A loss must be out of the control of the policyholder, true or false?

The assertion that a loss must be out of the control of the policyholder is fundamentally true in the context of insurable events. Insurance is designed to cover risks that the insured cannot control or foresee, providing financial protection against unexpected incidents. For instance, events such as natural disasters, theft, or accidents fall under this category, as policyholders are typically not able to prevent them from occurring.

When evaluating claims, insurance companies generally seek to ensure that the loss event meets the criteria of being sudden, accidental, and unpreventable by the insured. In contrast, losses resulting from negligence, lack of maintenance, or predictable occurrences may not qualify for coverage, reflecting the intention behind the insurance model.

While specific policies might have exceptions or clauses that can address particular conditions, the core principle remains that the loss should be outside the policyholder's control for the insurance to be applicable. Therefore, emphasizing that losses need to be beyond the policyholder's control aligns well with the foundational principles of risk management and insurance practices.