General Insurance
Which characteristic would ordinarily prevent a risk from being insurable?
Answer and explanation
Answer: D. An insurable risk should produce losses that are accidental, definite, measurable, and not catastrophic to the entire pool at the same time, since simultaneous losses across all insureds defeat the pooling on which insurance rests. The other characteristics are what make a risk insurable rather than what disqualifies it.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, elements of insurable risks
More general insurance questions
- Which feature identifies a fraternal benefit society?
- Which four elements must be present for an insurance contract to be legally enforceable?
- Which method of handling risk does buying life insurance represent?
- Which need is customarily met by a government insurer rather than a private one?
- Which policy feature is designed chiefly to limit adverse selection?
- Which set names the elements of a legal contract as the outline lists them?
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