Question 1010 of 303 · California Life-Only Agent Exam

Which of the following is a requirement of an ideally insurable risk?

Exactly one answer is correct.

AThe loss must be certain to happen within a year
BThe loss should be controlled by the insured
CThe loss should affect most of the insureds at once
DThe loss must be definite and measurable

Show solution

Correct answer to question 1010

D: The loss must be definite and measurable

Explanation

An insurable loss must be definite, measurable, accidental from the insured's view, and unlikely to hit many insureds at the same time. A certain loss cannot be insured.

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Which of the following is a requirement of an ideally insurable risk?

Correct answer to question 1010

Explanation

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