Question

From an insurance perspective, the term "loss exposure" means:

Answer 1

Answer:

C. the extent to which an insurer is subject to a possible loss

Explanation:

In insurance, "loss exposure" shows the extent to which an insurer is subject to a possible loss. It denotes the possibility of loss especially financial loss. This financial loss can be as a result of loss of use, damage or financial claim against one or the business.

There are four types of loss exposures:

1. Liability loss exposures

2. Income loss exposures

3. People loss exposures

4. Property loss exposures.