Which of the following is NOT considered to be a definition of the term "loss"?

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Which of the following is NOT considered to be a definition of the term "loss"?

A) Probability that an event will occur
B) An insurable event that takes place which results in a payment made by the insurance company
C) Unintentional decrease in the value of an asset due to a peril
D) The amount an insurance company must pay because of an insurable event

Answer: A) Probability that an event will occur

Nature of Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

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