Which of the following represents a risk that usually does not meet the tests of insurability?
A) loss from legal liability,
B) loss of income due to old age,
C) loss from bankruptcy,
D) loss from lifetime disability,
E) loss of future business income due to fire.

Question

Quizplus · Accepted Answer

Loss from bankruptcy usually does not meet the tests of insurability because it is often a result of predictable business risks or poor management decisions, which are not random or unforeseeable events. Insurance typically covers risks that are uncertain and accidental, not those that can be anticipated or are within the control of the insured.

Which of the Following Represents a Risk That Usually Does