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?

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? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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