Final answer:
Minimum or maximum boundaries to prevent hazards refer to regulatory standards set to protect health and property, such as air quality limits and OSHA safety requirements, as well as insurance measures to mitigate moral hazard.
Step-by-step explanation:
The minimum or maximum boundaries that must be met to prevent a hazard are essential in various fields such as environmental health, occupational safety, and public policy. These boundaries or limits are often established by regulatory bodies to protect human health, as with primary standards, or to prevent environmental and property damage, as indicated by secondary standards. For example, one could consider the 99th percentile of 1-hour daily maximum concentrations, averaged over three years, which should not be exceeded more than once per year, to protect air quality.
In the context of occupational health and safety, the Occupational Safety and Health Administration (OSHA) sets standards designed to shield workers from serious hazards. This includes requiring adequate safety measures like fire sprinkler systems and other equipment to mitigate risks. Similarly, in insurance, companies strive to minimize the impacts of moral hazard through various strategies such as fraud investigations and behavior monitoring, offering incentives for additional safety measures like security and fire systems to ensure a minimum level of security.