What term refers to the likelihood that an insurance policy will be claimed upon?

The correct term that refers to the likelihood that an insurance policy will be claimed upon is "Underwriting Risk." This term is central to the insurance industry, as it encapsulates the uncertainties insurance companies face when evaluating the potential risks associated with the policies they issue. Underwriting risk assesses the probability of a policyholder filing a claim and is crucial in determining premium pricing and overall risk management strategies.

In contrast, while "Risk Assessment" is related to evaluating and understanding risks, it broadly speaks to the process of identifying and analyzing potential risks rather than specifically addressing the likelihood of claims. "Moral Hazard" refers to the behavior changes of the insured after obtaining coverage, which can increase the chances of a claim being made. "Loss Ratio" measures the losses paid out in claims relative to the premiums earned; although related to claims, it doesn't directly refer to the likelihood of claims being made but rather to the outcome of those claims in financial terms. Thus, "Underwriting Risk" is the most precise term for the context of the question regarding the likelihood of a policy being claimed upon.