What is meant by the term 'act of God' in insurance?

The term 'act of God' in insurance refers to natural events that occur without human intervention and that are typically considered unpreventable. These can include disasters such as earthquakes, floods, hurricanes, or tornadoes. In insurance policies, these events are significant because they may be excluded from standard coverage due to their unpredictable and uncontrollable nature. By recognizing an 'act of God,' insurance companies delineate their financial responsibility for damages caused by such unforeseen occurrences.

The other choices describe situations that involve different types of risk or human agency, such as medical emergencies, preventable events, or acts of terrorism, which do not fall under the definition of natural disasters that constitute 'acts of God.'