The chance of a financial loss because of a hazard or a source of danger is referred to as which of the following?

Question

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The chance of a financial loss because of a hazard or a source of danger is referred to as peril. Option A is incorrect as it refers to a situation involving a high degree of risk but also the possibility of high return/profit. Option B is incorrect as it refers to compensation or reimbursement for a loss. Option D is incorrect as it refers to the portion of an insurance claim that the policyholder is responsible for paying.

The Chance of a Financial Loss Because of a Hazard