What term refers to people or things that are subjected to loss and are insured?

The term that refers to people or things that are subjected to loss and are insured is known as exposure units. In the context of insurance, exposure units are the units of measurement used to determine the level of risk associated with an insured entity. This concept helps insurers quantify the risk exposure by linking potential losses to specific insurance policies. For example, in property insurance, a home would be considered an exposure unit because it can be harmed by events like fire or theft, leading to financial loss.

Understanding exposure units is critical for insurers as they calculate premiums, set coverage limits, and assess claims. The ability to effectively gauge exposure allows for better risk management and appropriate pricing of insurance products.