Which term is a demand for payment resulting from a loss?

Which term is a demand for payment resulting from a loss?

• A. Loss
• B. Claim
• C. Accident
• D. Exposure

Answer: (B)

A claim is the formal demand for payment that arises after a loss. In insurance terms, a loss is the actual damage or financial value incurred, while a claim is the notification and request to the insurer (or responsible party) to compensate for that loss. An accident refers to the event causing damage, and exposure describes the level of risk or potential for loss. So the term that fits “a demand for payment resulting from a loss” is the claim, because it is the paperwork and request sent to obtain indemnification following the loss.

A claim is the formal demand for payment that arises after a loss. In insurance terms, a loss is the actual damage or financial value incurred, while a claim is the notification and request to the insurer (or responsible party) to compensate for that loss. An accident refers to the event causing damage, and exposure describes the level of risk or potential for loss. So the term that fits “a demand for payment resulting from a loss” is the claim, because it is the paperwork and request sent to obtain indemnification following the loss.