Texas Adjuster Practice Test

What is defined as an event that leads to an insured loss or damages?

1. Claim

2. Occurrence

3. Incident

4. Accident

The correct answer is: Occurrence

The term that describes an event leading to an insured loss or damages is "occurrence." In the context of insurance, an occurrence is a broad term that encompasses any event that causes harm or damage that is covered by an insurance policy. This can include a wide range of incidents, from natural disasters to accidents. The definition underscores the relationship between the event and the resulting loss or damage, making it a fundamental concept in understanding how insurance claims are processed. Other terms, while related, do not capture the broad nature of potential events that lead to a claim as effectively as "occurrence" does. A claim specifically refers to the demand made by the insured for compensation following a loss, but it does not define the event itself. An incident typically refers to an event that may or may not result in an insurance claim, whereas an accident usually refers to unintended events that cause harm. Thus, "occurrence" is the most accurate term to describe the event that triggers coverage under an insurance policy.