Insurable risk is a critical concept for insurance companies. Their underwriting departments are tasked with...
80.2K
Verified Solution
Link Copied!
Question
Finance
Insurable risk is a critical concept for insurance companies. Their underwriting departments are tasked with ensuring that risk exposures will not bankrupt the firm. The characteristics of ideal insurable risks include which of the following? (1) Losses must be due to chance (2) Losses must be catastrophic (3) Risk must be speculative (4) Probability and magnitude of loss must be quantifiable (5) Access to large non-homogeneous group of insureds (6) Loss must be predictable 2, 3, 4 and 5 1, 4 and 6 1, 3, 4 and 5 1, 2 and 6 Mark discovers that he has a serious health condition, after visiting his doctor during an annual checkup. He immediately stops by a local insurance office and fills out an application for life insurance. He submits the application to the agent, along with a check for the first premium payment. This is an example of: Morale hazard O Moral hazard O Physical hazard O Fundamental risk O Adverse select
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
