General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An underwriter notes that a prospective insured has significant loss exposure. The underwriter most likely means the applicant:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Loss exposure describes a genuine possibility that the insured will suffer a financial loss, such as medical bills or lost income from a covered illness or injury. It implies probability rather than certainty, and it looks forward from the present. Past claims, premium levels, and policy limits are separate matters from the exposure itself, which is the combination of a risk and the possibility of financial loss that the underwriter is evaluating.
Why the other options are wrong
- A) A definite future loss would contradict the requirement of fortuity; exposures are possibilities, not certainties.
- B) Past claims are loss history, not current exposure to future loss.
- D) Premiums and policy limits relate to pricing and the amount of coverage, not to the possibility of loss.
Memory hook
Exposure means possible harm, not a deal already done.