1. A person who decides never to fly in order to eliminate the risk of an airplane crash is using risk:

Avoidance

Risk avoidance eliminates exposure to a risk entirely by not engaging in the activity that creates it.

2. For a risk to be insurable, the potential loss should generally be:

Definite, measurable, and not catastrophic to the insurer

An insurable risk should be definite and measurable, due to chance, and not so catastrophic that it threatens the insurer's solvency.

3. An insurance policy is a conditional contract because:

The insurer pays only after the insured meets conditions such as paying premium and filing proof of loss

In a conditional contract, the insurer's duty to pay arises only when the insured satisfies stated conditions, such as paying premium and submitting proof of loss.

4. When an insurer's actions lead a client to reasonably believe a producer holds authority the producer does not actually possess, the producer has:

Apparent authority

Apparent authority arises when the insurer's conduct leads a third party to reasonably believe the producer has authority, even if not expressly granted.