Which of the Following Is an Insurable Risk

Most insurance providers only cover pure risks or those risks that embody most or all of the main elements of insurable risk. In case of a scenario where the loss is too huge that no insurer would want to pay for it the risk.

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Insureds cannot be randomly selected.

. C An insurable risk must involve a loss that is definite as to cause time place and amount. 2 The loss can be estimated measurable. There are ideally six characteristics of an insurable risk.

The Risk Management Principle. B Risk of fire. Insurance cannot be mandatory.

Interest rate risk E. Reputational risk is uninsurable. B Pure risk involves only the chance of loss.

D All of these. The loss must be determinable and measurable. Which of the following accurately characterizes an insurable risk.

Gambling and investments are the most typical examples of speculative risk. D Only pure risks are insurable. Certain perils like war are usually excluded from most insurance policies because they have the potential to adversely affect large numbers of insureds at the same time.

Which of the following is NOT a criteria for an insurable risk. A risk that presents the chance of loss but no opportunity for gain. None of the above C.

An insurable risk must involve a loss that is definite as to cause time place and amount. An outcome of pure risk can be predic View the full answer. These elements are due to.

Which of the following statements are correct. A fire caused by arson is an insurable risk. The premium must be economically feasible.

Change in consumers taste B. In return the company agrees to pay you in the event you suffer a covered loss. The insurable risk needs to be statistically predictable.

There are various essential conditions that need to be fulfilled before acceptance of insurability of any risk. Which of the following insurance concepts means that an insured or policyowner will only receive the actual amount of loss even though the insurance contract allows for or could pay an even greater amount of benefit. These risks are generally insurable.

That the chance for both a loss or gain exists b. The loss must be accidental and unintentional. Which of the following is NOT a criteria for an insurable risk.

D Insureds cannot be randomly selected. Which of the following is an example of business related risk A. The probability of a third world war C.

The death of a business partner E. They occur in loss and gain E. Presents the chance of loss but no opportunity for gain.

Group of answer choices. A Risk of theft. All of the above B.

The traditional insurance market does not consider speculative risks to be insurable. Insurable risk that is faced by a large number of people and the amount of the loss can be predicted. Insurable risks are risks that insurance companies will cover.

Pure risk - In this risk there are only two possibilities something bad happening or nothing happening. Which of the following is NOT true of insurable risks. 1 It is utmost important that loss should be unexpected or accidental.

There is never a possibility of gain or profit. Loss due to change in fashion Correct Answer. Insured loses must be accidental.

Therefore it is characteristic of both pure and speculative risks. The agent accepts a premium payment after the end of the grace period. The chance of loss must be calculable.

Large number of exposures O D. Accidental loss O B. Option b Speculative risk is not an insurable risk.

The loss should not be catastrophic. Internal fraud due to employee dishonesty is an uninsurable risk. Litigation is the most common example of pure risk in liability.

Risks can be insured even if they are not measurable or determinable. Speculative risk has a chance of loss profit or a possibility that nothing happens. This explains why one of the characteristics of an insurable risk is that the risk be.

Asked Apr 25 2021 in Business by LillianMoon. Insurable and Uninsurable Risk. Asked Jul 29 2018 in Business Studies by Sakil Alam 642k points Which of the following is not an insurable risk.

The following objectives are covered in the material. Large number of exposures O D. You can examine these topics more closely by reviewing the lesson called Ways to Manage Risk.

Accidental loss O B. All of the above B. Insureds cannot be randomly selected.

Loss is definite An insured that doesnt wear a seat belt and drives above the speed limit believing that if he gets in a car accident his insurance policy will cover the cost of any damages to his car or medical bills. The loss must not pose a catastrophic risk for the. Some elements of insurable risk are given as follows.

The loss must be catastrophic c. They occur in loss and no loss C. They are insurable situation only D.

C A stock market venture is an example of a pure risk. Flood resulting from excessive rain in a year D. That the chance of loss.

C Risk of change in pattern of demand. An insurable risk requires a. When you buy commercial insurance you pay premiums to your insurance company.

None of the above situation 3. The Indemnity Principle D. A Uncertainty regarding financial loss is the definition of risk.

A large number of similar exposures must exist. Insurable risks are those risks for which to get an insurance is comparatively easy and which meet certain prescribed criteria laid by the insurance company. These include a wide range of losses including those from fire theft or lawsuits.

Which of the following is an example of apparent authority of an agent appointed by an insurer. A risk that conforms to the norms and specifications of the insurance policy in such a way that the criterion for insurance is fulfilled is called insurable risk. Premiums must be calculable OC.

Lets see why this is so a. Theft by an employee is seen as an uninsurable risk. Which of the following is true about speculative risk A.

Which of the following is an example of insurable risk. There must be a large number of exposure units. Premiums must be calculable OC.

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