Which of the following defines an 'insurable loss'?

Which of the following defines an 'insurable loss'?

• A. A loss that is predictable and occurs frequently
• B. A loss that is subject to insurance claim limits
• C. A loss meeting specific criteria making it acceptable for coverage
• D. A loss that can be anticipated and planned for

Answer: (C)

An insurable loss is defined as a loss that meets specific criteria making it acceptable for coverage under an insurance policy. This means that the loss must be both measurable and unintentional and must also adhere to the conditions set forth by the insurance provider. Insurable losses typically involve risks that are not too speculative and can be quantified, which is essential for the insurer to assess the potential payout versus the premium collected. Criteria that may define an insurable loss often include the nature of the risk, the probability of occurrence, the extent of possible loss, and the insured event falling within the boundaries of the policy terms. By establishing these parameters, insurance companies can ensure that they can manage their risk and provide coverage to policyholders confidently.

An insurable loss is defined as a loss that meets specific criteria making it acceptable for coverage under an insurance policy. This means that the loss must be both measurable and unintentional and must also adhere to the conditions set forth by the insurance provider. Insurable losses typically involve risks that are not too speculative and can be quantified, which is essential for the insurer to assess the potential payout versus the premium collected.

Criteria that may define an insurable loss often include the nature of the risk, the probability of occurrence, the extent of possible loss, and the insured event falling within the boundaries of the policy terms. By establishing these parameters, insurance companies can ensure that they can manage their risk and provide coverage to policyholders confidently.