All the Following Are Necessary for an Ideally Insurable Loss

question 35

Multiple Choice

All the following are necessary for an ideally insurable loss exposure except:

• A) large number of homogeneous exposures
• B) losses must be accidental and unintentional from the point of view of the insured
• C) losses must be measurable
• D) low probability of loss

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Definitions:

Economic Benefits

The advantages or gains that an organization receives or expects to receive from its business activities.

Capital

Refers to the financial assets or resources that individuals, companies, or governments use to fund their operations and invest in their ventures.

Income

The money received, especially on a regular basis, for work or through investments.

Liability

A company's financial debt or obligations that arise during business operations, to be settled over time through the transfer of economic benefits.