Which term refers to a situation where there is only a possibility of loss?

The term that describes a situation where there is only a possibility of loss is "insurable risk." An insurable risk refers to a scenario that meets specific criteria allowing it to be covered by insurance. These criteria typically include uncertainty of loss, potential for loss to be measurable, and the chance that the loss occurs must be considerable enough that it can be pooled to spread the risk among many insured parties.

In this context, the possibility of loss is essential for defining an insurable risk because it reflects an inherent uncertainty that insurance companies can manage through underwriting processes and premium calculations. Insurable risks are characterized by factors like being random and not catastrophic, ensuring that they can be feasibly covered.

The other terms mentioned do not fit this definition. An uninsurable risk represents situations that insurance companies will not cover due to their high likelihood of loss or excessive nature. Proximate cause relates to establishing a direct cause-effect relationship in loss claims, while an adjuster is a professional who evaluates and determines the amount to be paid on a claim. None of these accurately capture the essence of merely having a possibility of loss like insurable risk does.