General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A physician is sued for medical malpractice. For insurance purposes, the physician's vulnerability to such claims is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A loss exposure is the possibility of loss to which a person or organization is subject. The physician faces a liability loss exposure: the possibility that a patient's injury will lead to a legal claim for damages. Liability exposures are one of the classic categories of loss exposure — along with property, person, and income exposures — and they are the basis for liability insurance. The exposure exists because the physician's conduct can harm others and create legal liability.
Why the other options are wrong
- B) A hazard is a condition that increases the chance of a loss; the possibility of being sued is an exposure, not a hazard.
- C) A speculative risk offers the chance of gain or loss; the malpractice exposure offers only the chance of loss.
- D) A morale hazard is carelessness encouraged by the existence of insurance; the exposure itself is not a hazard.
Memory hook
Being suable is an exposure; negligence is the hazard; a verdict is the loss.