What does the term "occurrence" signify?

The term "occurrence" signifies an event or incident that takes place, which aligns closely with its definition in insurance contexts. In insurance policies, an occurrence typically refers to an event that results in damage or loss and may trigger coverage under the policy. Understanding "occurrence" in this way is vital for assessing claims and determining whether a covered event has taken place, which ultimately impacts the insurer's liability.

The other choices relate to different concepts. One highlights the necessity of a covered peril to establish coverage, which is part of understanding claim eligibility but not the definition of occurrence itself. Another refers to assessing an asset's current worth, which is more about valuation rather than the event that triggers a claim. Lastly, the depreciation concept focuses on the reduction in value due to age, which does not capture the essence of an occurrence as it pertains to events or incidents that result in losses. Thus, the chosen term correctly embodies the fundamental nature of what constitutes an occurrence in insurance language.