What characteristic defines a covered loss?

A covered loss is defined as an event that is included within the scope of a policy's coverage, meaning that the insurer is obligated to provide compensation for that loss according to the terms and conditions outlined in the policy.

The defining characteristic of a covered loss being independent of the policyholder means that it occurs due to external factors rather than as a result of the policyholder's own actions or decisions. For instance, damage caused by natural disasters or unforeseen accidents are typically considered covered losses because they are beyond the direct control of the policyholder.

When evaluating this within the context of the options presented, the idea of independence reinforces the premise that insurance is designed to protect individuals from unforeseen risks, contrasting with situations where policyholders might have direct control over a loss incident. A characteristic of dependency on the policyholder's actions could lead to exclusions in coverage, as many policies limit or deny coverage for losses that arise from negligent or intentional behaviors.

In short, a covered loss’s independence from the policyholder is crucial because it highlights the essence of insurance: providing support for unpredictable events rather than issues that can be managed or prevented by the policyholder.