An Insurance Company Would Not Be Willing to Insure a Risk

question 23

Multiple Choice

An insurance company would not be willing to insure a risk if it

• A) results from political disruptions.
• B) has a measurable loss.
• C) results from an accident.
• D) has a low probability of occurring.

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Definitions:

Criminal Penalties

Sanctions imposed for violations of criminal law, which can include fines, imprisonment, or other forms of punishment.

Clayton Act

A U.S. antitrust law aimed at promoting fair competition for the benefit of consumers, preventing mergers and acquisitions that significantly reduce market competition.

Hart-Scott-Rodino Antitrust Improvement Act

A federal law that requires companies to file premerger notifications and undergo a review period before completing certain mergers, acquisitions, or transfers of securities.

FTC

The Federal Trade Commission, a U.S. agency responsible for consumer protection and maintaining competition.