For a risk to be insurable, which of the following criteria must it meet?
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, it must be financially measurable, meaning that the potential loss can be quantified in terms of monetary value. This allows insurers to determine the appropriate premium to charge for the coverage. The potential loss does not have to be insignificant, and it is not necessary for the loss to be under the control of the insured. However, if there are very few exposures to the peril in question, it may be difficult for insurers to spread the risk among a large pool of policyholders, making it less likely that the risk will be insurable.

For a Risk to Be Insurable, Which of the Following