What term refers to the direct cause of loss in an insurance context?

In an insurance context, the term that refers to the direct cause of loss is "peril." A peril is an event or circumstance that can lead to a loss or damage covered by an insurance policy. For example, common perils include fire, theft, natural disasters, and accidents. Understanding the concept of peril is crucial for both insurers and insureds, as it defines what risks are covered under an insurance policy.

The other terms, while related to the overall insurance process, carry different meanings. "Loss" refers to the financial detriment or damage that results from a peril, while "claim" is a request made by the policyholder to the insurer for compensation based on a loss incurred. "Occurrence" is a broader term that refers to an event that gives rise to a claim, which may involve multiple perils or losses. Therefore, peril specifically denotes the immediate cause of the loss, making it the correct choice in this context.