In legal terms, the written explanation of how a loss occurred is known as what?

In legal terms, a written explanation of how a loss occurred is referred to as a statement. This document typically outlines the details surrounding an incident, including the circumstances that led to the loss, the parties involved, and other relevant information. Statements are often used in various legal contexts, including insurance claims and workers' compensation cases, where understanding the situation is crucial for determining responsibility and liability.

An affidavit, while a sworn statement made under oath, does not necessarily serve the purpose of detailing how a loss occurred; rather, it’s a formal declaration of facts. Testimony pertains to verbal evidence given under oath in a legal setting, and a declaration is a broader legal term that can indicate a formal announcement or assertion. In contrast, the specificity and function of a statement as a written account make it the correct choice in this context.