What term refers to the chance of loss in insurance?

The term that refers to the chance of loss in insurance is "Risk." In the context of insurance, risk encompasses the possibility or likelihood of a loss occurring, which insurers need to assess in order to determine coverage options, premiums, and overall policy conditions. Understanding risk is fundamental to the entire insurance process, as it helps in evaluating potential future events that could result in financial loss.

Other terms in the choices typically relate to specific aspects of the risk assessment process but do not convey the same comprehensive meaning. For example, "Threat" often refers to a potential cause of harm but is narrower in scope, focusing on the external factors that might lead to a loss. "Exposure" indicates the degree to which something is subject to risks but does not directly define the likelihood of loss itself. "Danger" similarly refers to a situation that poses a risk but is more about the immediate perception of threats rather than the calculated risks involved in underwriting insurance. Thus, "Risk" precisely captures the essence of potential loss in insurance contexts.