XYZ Insurance Company Writes Coverage for Most Perils Which Can

question 40

Multiple Choice

XYZ Insurance Company writes coverage for most perils which can damage property.XYZ,however,does not write flood insurance on property located in flood plains.Which requirement of an ideally insurable risk might be violated if XYZ wrote flood insurance on property located in flood plains?

• A)There must be a large number of similar exposure units.
• B)The loss should not be catastrophic.
• C)The chance of loss must be calculable.
• D)The losses must be determinable and measurable.

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Definitions:

Lactate

An ion or ester of lactic acid that forms in muscles under anaerobic conditions and can be used as a source of energy.

Pyruvate

A key intermediate in several metabolic pathways, crucial for energy production through cellular respiration.

Tricarboxylic Acid Cycle

A series of chemical reactions used in aerobic respiration to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins.

Oxaloacetate

A 4-carbon compound; an important intermediate in the citric acid cycle and in the.