Which term describes uncertainty arising from the possible occurrence of events?

The term that accurately describes uncertainty arising from the possible occurrence of events is "risk." In the context of insurance and title insurance, risk encompasses the potential for loss or harm that may occur due to various unforeseen circumstances. For instance, when assessing title insurance, one must consider the risk involved if there are defects in the title, such as liens or claims, that could affect property ownership.

“Exposure” refers to the extent to which someone is subject to losses, but it does not fully capture the element of uncertainty. “Hazard” denotes a condition that increases the chance of a loss occurring but isn't synonymous with uncertainty itself. “Peril” describes a specific cause of loss, such as fire or theft, but again, focuses on the source of damage rather than the uncertainty related to potential future events.

Understanding these distinctions is important for professionals in the field, as they influence how risks are managed and mitigated in title insurance practices. Therefore, risk is the term that best captures the overall uncertainty associated with future occurrences that could impact outcomes.