For a risk to be insurable it must meet which of the following criteria?
A) The loss must be financially measurable.
B) The potential loss should be insignificant.
C) The loss must be under the control of the insured.
D) There must be very few exposures to the peril in question.

Question

Quizplus · Accepted Answer

For a risk to be insurable, the loss must be financially measurable, meaning it can be quantified in monetary terms. This allows insurers to accurately calculate premiums and potential payouts. The potential loss does not need to be insignificant, as even large losses can be insured against. The insured does not necessarily need to have control over the risk, as many insurable risks, such as natural disasters or accidents, are beyond the control of the insured. The number of exposures to the peril also does not impact insurability.

For a Risk to Be Insurable It Must Meet Which