Question

23. For the purpose of insurance, risk is defined as

(Choose from the following options)
1. The certainty of loss.
2. The cause of loss.
3. An event that increases the amount of loss.
4. The uncertainty or chance of loss.

Answer 1

Risk, for the purpose of insurance, is the uncertainty or chance of loss.

Step-by-step explanation:

Risk, for the purpose of insurance, is defined as the uncertainty or chance of loss. In insurance, risk refers to the likelihood that an event will occur that could result in financial loss or damage. Insurance companies use risk assessment to determine the premiums they charge and the coverage they provide.