The potential dollar loss that could result if an unwanted event occurs is called a(n)
A)threat.
B)exposure.
C)risk.
D)extraordinary loss.

Question

Quizplus · Accepted Answer

The potential dollar loss is referred to as exposure in insurance terms. Threat refers to the possibility of a specific unwanted event occurring, while risk is the likelihood of that event happening. Extraordinary loss is not a commonly used term in insurance.

The Potential Dollar Loss That Could Result If an Unwanted