1. In insurance terms, risk refers to:

Uncertainty regarding the possibility of loss

Risk is the uncertainty of loss; insurance is designed to handle pure risk (chance of loss or no loss).

2. An insured's careless attitude that increases the chance of loss because they have insurance is a:

Morale hazard

A morale hazard is an indifferent attitude toward loss arising because the insured has coverage.

3. In health insurance, sickness and accidental injury are examples of:

Perils

A peril is the cause of loss; health insurance covers the perils of sickness and accidental injury.

4. Paying a premium so an insurer assumes the cost of potential medical losses is risk:

Transfer

Buying insurance transfers the financial consequences of loss from the insured to the insurer.