Joan Stone owns a home in Edmond, Oklahoma. She is worried her property might be damaged due to some unforeseen event. This worry about a loss is an example of a:

Question

Quizplus · Accepted Answer

A risk is uncertainty or potential for loss, and Joan Stone's worry about her property being damaged is an example of a risk. Peril refers to the cause of a loss, hazard refers to a condition that increases the probability of a loss, premium refers to the amount paid to an insurance company for coverage, and policy refers to the contract between the insured and the insurance company.

Joan Stone Owns a Home in Edmond, Oklahoma