Which of the following principles describes creating or increasing the chance of loss?

The principle that describes creating or increasing the chance of loss is hazard. Hazards refer to conditions or situations that increase the likelihood of a loss occurring. These can be physical hazards, like a slippery floor or structural issues in a building, as well as moral hazards, which involve individuals whose actions may lead to an increased risk of loss (e.g., engaging in reckless behavior or not taking proper care of insured property).

Each of the other concepts serves a different function within the context of risk management and insurance. Indemnity refers to the principle of compensating an insured party for the loss they experience, ensuring they are restored to their pre-loss financial condition. Warranty involves a guarantee regarding certain conditions or facts related to the property or the coverage, making the insurer responsible only if those conditions hold true. Risk, while related to the concept of potential loss, refers specifically to the uncertainty of financial loss itself rather than the factors contributing to its increase.

Thus, hazard is the correct answer as it directly pertains to the factors that raise the likelihood of experiencing a loss.