Hurricane damage in a given area is an example of a ________ for which it is difficult to predict loss exposure.

Question

Quizplus · Accepted Answer

Hurricane damage is a high-severity event because it can cause significant property damage and loss of life. However, it is a low-frequency event because hurricanes do not occur regularly in the same location. Because of the limited occurrence of hurricanes, it is difficult to predict loss exposure.

Hurricane Damage in a Given Area Is an Example of a ________