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:

Crude Oil Reserves

Quantities of crude oil that are identified and accessible for extraction with current technology.

Arctic National Wildlife Refuge

A protected area in Alaska, United States, known for its natural beauty, diverse wildlife, and ongoing debates over oil exploration.

Oil Sands

Deposits of bitumen or extremely heavy crude oil that can be mined and processed to extract the oil, primarily found in Alberta, Canada.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.