What term describes the act of a policyholder demonstrating that a loss occurred?

• A. Claim Filing
• B. Proof of Loss
• C. Loss Declaration
• D. Claim Documentation

Answer: (B)

The term that describes the act of a policyholder demonstrating that a loss occurred is "Proof of Loss." This is a formal statement provided by the insured to the insurer, detailing the facts and supporting evidence of the loss. It typically includes information such as the date and cause of the loss, the estimated amount of damages, and any other relevant details that support the claim.

The process of proving a loss is essential for the insurance company to assess the validity of the claim and determine the appropriate compensation. This requirement ensures that there is substantiation behind the claim being made, allowing for a fair evaluation of the circumstances surrounding the loss.

Other options, while related to the insurance claims process, do not specifically capture the essence of demonstrating that a loss occurred in the same legal and procedural context as "Proof of Loss." Claim filing refers to the act of submitting a claim to the insurer, loss declaration is often used in broader terms for statements regarding losses, and claim documentation can encompass various forms of evidence but does not specifically denote the formal proof itself.