Which term describes a specific event that triggers an insurance policy?

The term that describes a specific event that triggers an insurance policy is "occurrence." In the context of insurance, an occurrence is defined as an event that leads to a loss or damage that falls under the coverage of the policy. This can include accidents, natural disasters, or other incidents specified in the policy.

Understanding "occurrence" is crucial because it sets the stage for the activation of the policy. Once an occurrence happens that meets the criteria outlined in the insurance contract, the insurer may be liable to cover the associated claims, provided all conditions and exclusions are taken into account.

The other terms listed have distinct meanings that do not refer specifically to the triggering event of an insurance policy. For example, a deductible is the amount a policyholder is required to pay out-of-pocket before insurance coverage kicks in, while loss type categorizes the nature of the loss but does not inherently describe the event itself. An exclusion lists conditions or circumstances that are not covered by the insurance policy, clearly outlining what is not protected, rather than identifying the event that triggers coverage.