General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
For a situation to present an insurable loss under a health policy, the loss must be:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An insurable loss must be capable of being expressed in money — the insurer has to be able to determine the amount of the loss to indemnify it. Medical expenses and lost income are dollar-measurable, which is why health, disability, and medical policies work. Emotional harm, worry, or inconvenience generally cannot be measured in dollars and are not indemnified under these policies. The loss must also be fortuitous — uncertain and accidental — not certain and not deliberately caused.
Why the other options are wrong
- B) Emotional or psychological discomfort is not a dollar-measurable loss; insurance indemnifies financial harm.
- C) A certain loss is not insurable because there is no risk; insurance requires uncertainty of occurrence or timing.
- D) Deliberately caused losses lack fortuity and are excluded from coverage; the loss must be accidental from the insured's standpoint.
Memory hook
If you can't price it in dollars, you can't insure it. Losses must have a number.