For a Risk to Be Insurable, Which of the Following

question 164

Multiple Choice

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.

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Definitions:

Net Worth

The total assets owned by an individual or entity minus the total liabilities owed; a measure of financial health.

Modern Slavery

Modern slavery encompasses forms of exploitation that deprive someone of their freedom for personal or commercial gain, including human trafficking, forced labor, and debt bondage.

Wealthy Relatives

Family members who possess a considerable amount of wealth, assets, or financial resources.

Trapped

A feeling of being unable to escape or improve one's situation, often due to external constraints or psychological barriers.