Which of the following is not a risk that can be insured?
Asked by: Prof. Mable Collins Jr. | Last update: December 28, 2025Score: 4.8/5 (2 votes)
Which risk can not be insured?
While some coverage is available, these five threats are considered mostly uninsurable: reputational risk, regulatory risk, trade secret risk, political risk and pandemic risk.
Which type of risk is not insurable?
An uninsurable risk could include a situation in which insurance is against the law, such as coverage for criminal penalties. An uninsurable risk can be an event that's too likely to occur, such as a hurricane or flood, in an area where those disasters are frequent.
Which of the following is not a risk covered by insurance?
Insurance companies typically cover pure risks such as property damage and certain kinds of litigation. Most insurers will not cover speculative risks such as those related to gambling or investing.
What is not covered as a risk in insurance?
In so doing, any peril not named in the exclusions list is automatically covered. The most common types of perils excluded from "all risks" include earthquake, war, government seizure or destruction, wear and tear, infestation, pollution, nuclear hazard, and market loss.
What Kias Are Not Being Insured? - InsuranceGuide360.com
Which of the following is not considered to be an insurable risk?
Speculative risk has a chance of loss, profit, or a possibility that nothing happens. Gambling and investments are the most typical examples of speculative risk. The traditional insurance market does not consider speculative risks to be insurable.
What is not covered by insurance?
Health insurance typically covers most doctor and hospital visits, prescription drugs, wellness care, and medical devices. Most health insurance will not cover elective or cosmetic procedures, beauty treatments, off-label drug use, or brand-new technologies.
Which of the following risk can be insured?
Insurable risks are risks that insurance companies will cover. These include a wide range of losses, including those from fire, theft, or lawsuits. When you buy commercial insurance, you pay premiums to your insurance company. In return, the company agrees to pay you in the event you suffer a covered loss.
What is a specific risk not covered by an insurance policy?
An exclusion in an insurance policy is a specific risk, loss, or claim that is expressly not covered by the policy.
Which is not a pure risk in insurance?
Unlike pure risk, speculative risk has opportunities for loss or gain and requires the consideration of all potential risks before choosing an action. For example, investors purchase securities believing they will increase in value. But the opportunity for loss is always present.
What things are not insurable?
Perils that insurers are unwilling to cover are often catastrophic in nature, for which the probability of a payout is high and expected. The major areas for which insurance is unobtainable include reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.
What is an example of a risk in insurance?
Financial and Non-Financial Risks
Some examples include: Damage to property such as in a vehicle accident where a car is involved in a collision and must then be repaired or replaced. Property theft. Medical and/or court costs related to a personal injury.
Which of the following is not considered a definition of risk?
Anything that removes a vulnerability or protects against one or more specific threats, is not considered a definition of risk.
Which risk is not insurable?
Some of the most common non-insurable risks include natural disasters, pandemics, and acts of terrorism. While business Insurance can help protect businesses from many types of risks, it is important to be aware of the risks that are not covered.
Which of the following is not a risk factor for insurance?
The correct answer is A) Number of children is NOT considered to be a risk factor in life insurance underwriting.
What specific risks are not covered by an insurance policy?
Items such as damage from termites and insects, birds or rodents, as well as rust, rot, mold, and general wear and tear are typically not covered under a homeowners insurance policy. Additionally, damage from smog or smoke resulting from industrial or agricultural activities is excluded.
What is not an element of insurable risk?
Final answer: The element that is NOT an element of insurability is 'Risk of loss is speculative' because insurance deals with pure risks, not speculative risks that involve a potential for gain. The correct answer is option 2. Risk of loss is speculative.
What is excluded risk in insurance?
Insurance exclusions are policy provisions that waive coverage for certain types of risks or events. Policy exclusions create a balance between coverage for fortuitous losses (losses you couldn't have reasonably prepared for) and the need to remain solvent in order to pay those claims.
What is a specific risk in insurance?
Risk-specific insurance policies provide protection for businesses and individuals against certain identified exposures that might not be covered by a traditional insurance policy. Traditional insurance policies often cover all risks unless the risk is specifically excluded by the policy.
Which one of the following does not represent an insurable risk?
The characteristic 'Expensive' is NOT a fundamental property of insurable risk as insurable risks should be calculable, measurable, and accidental. Very expensive risks can pose a challenge to the principles of insurance, as they may be hard to afford or spread among policyholders.
Which of the following is not a type of risk management?
Risk elimination is not a type of risk management strategies.
What is considered all risk insurance?
"All risks" insurance (also referred to as open peril insurance) refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. You can find all risks insurance in a variety of industries. Examples include agriculture, business, machinery, and real estate.
Which of the following is not of insurance?
The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance.
Who is not considered an insured?
Independent contractors, for instance, are usually not considered insured. They are generally required to have their own insurance coverage. Similarly, vendors or clients benefiting from your services might not be covered unless explicitly added as Additional Insureds.
Which of the following is not part of an insurance?
Final answer:
The 'Certificate of Authority' is not part of an insurance contract; it is a state-issued license for an insurance company to operate. Terms like policy, application, and riders are components of an insurance contract. Therefore, The correct option is D. Certificate of Authority.