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Low insulation resistance causes power loss in that system. That's a direct loss. If you're paying for something like gasoline and it's leaking out the hose you use to get it into your vehicle, you don't get all you pay for. And then there's the distinct possibility that damage to the distribution system can result and further degradation of the conductor/insulator bundles can occur. The second thing could be a killer. There's always the possibility of a fire. That'd be bad.

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Q: What are two possible dangers when a wiring system has an unacceptably low value of insulation resistance?
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