Which statement correctly describes excess loss?

Excess loss specifically refers to losses that go beyond a predetermined monetary limit, which is what makes this option the correct choice. This concept is often applied in contexts such as insurance and risk management, where it indicates that an individual or organization will cover losses up to a certain threshold, and any losses beyond that will be considered excess.

This definition highlights the risk-sharing mechanism wherein the primary losses are handled up to the specified threshold, ensuring that only the excess portion is subjected to different treatment, such as being covered by a higher-tier insurance policy or requiring self-insurance strategies.

The other options do not accurately capture the concept of excess loss. Frequent minor injuries do not necessarily indicate excess loss unless they surpass a specific financial threshold. Severe accidents may incur significant losses, but they do not inherently define excess loss without context regarding a threshold. Similarly, while representing calculated risks can be related to loss management, it doesn't specifically outline what excess loss is. Therefore, focusing on losses that exceed a set monetary limit is what defines excess loss accurately.