Which of the Following Refers to the Potential for Loss

question 62

Multiple Choice

Which of the following refers to the potential for loss in an insurance agreement?

• A) Risk
• B) Loss
• C) Premium
• D) Distribution
• E) Outlay

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Definitions:

Apartment Building

A residential building containing multiple apartment units or flats, usually owned by a single entity and rented to various tenants.

Loose Carpeting

A condition where carpets are not securely fastened, posing a trip and fall hazard.

Joint Tenancy

Joint tenancy is a form of property co-ownership where two or more parties share equal ownership and rights to the entire property, with a right of survivorship.

Tenancy

An arrangement where an individual occupies land or property rented from a landlord.