Which of the following is not an element of insurable risk quizlet?
Asked by: Jalen Bauch | Last update: June 25, 2025Score: 4.5/5 (16 votes)
Which is not an element of 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.
Which of the following is not an insurable risk?
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.
What are the 3 elements of insurable risk?
Most pure risks can be divided into three categories: personal risks that affect the income-earning power of the insured person, property risks, and liability risks that cover losses resulting from social interactions.
Which of the following is an insurable risk quizlet?
Thus, the type of risk that is most likely to be insurable is a. pure risk. Pure risk includes risks due to accidents, natural disasters, and illness. Situations are considered pure risks when it results in either loss or no loss.
What are insurable risks?
What risk is not insurable?
An uninsurable risk is a risk that insurance companies cannot insure (or are reluctant to insure) no matter how much you pay. Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.
Which of the following is not an element to a legal contract?
Final answer:
Negotiation is not a necessary element for a legal contract to exist. A contract must have a legal purpose, an agreement, and involve competent parties. The Correct Option is; C. Negotiation.
What are the insurable risks?
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 are the 3 elements of insurable interest?
In general, there are three types of risks that are insurable: liability risk, personal risk and property risk. Property risk is any risk that could cause a partial or total loss of property. Personal risk is any risk that could impact the health and safety of employees.
What are the elements of risk?
This notion is illustrated in Figure 2, which highlights the following four basic components of risk: (1) context, (2) action, (3) conditions, and (4) consequences.
Which one of the following hazards is generally not insurable?
Answer and Explanation: POLITICAL RISKS are normally uninsurable by private insurance companies. Property, liability, and personal insurance are all common types of insurance that one may purchase for protection from unforeseen circumstances.
What does non insurable mean?
: not suitable or eligible to be insured : not insurable. an uninsurable risk. Some cars souped up with customized engines and suspensions may be uninsurable through standard policies.
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.
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 these is not considered to be an element of an insurable contract?
Final answer: The essential elements of an insurance contract include consideration, acceptance, and the offer. Negotiating is not a required element of the contract, making it the correct answer.
Which of these is not part of the definition of risk?
Anything that removes a vulnerability or protects against one or more specific threats, is not considered a definition of risk.
Which of the following is not an element of an insurable risk?
Risk of loss must be catastrophic is NOT an element of insurability. Insurability does not require the risk of loss to be catastrophic; rather, it requires the risk to be measurable, have potential for financial hardship, and be affordable.
What are the elements of an insurable risk?
The loss must be accidental and unintentional. The loss must be determinable and measurable. The loss should not be catastrophic. The chance of loss must be calculable.
Which risk cannot be insured?
Two types of risk cannot be insured: natural occurrences and human error. Natural occurrences include earthquakes, hurricanes, floods, and other extreme weather events. Human error occurs when a person does not follow safety procedures in the workplace, such as cutting corners or failing to wear protective equipment.
What are the examples of insured risk?
A standard commercial lease requires the landlord to insure the premises against a list of “insured risks”. These will include fire, flood, storm, earthquake and many other risks.
Which of the following is not considered to be an ideally insurable loss exposure?
One of the characteristics that is not considered ideal for an insurable loss exposure is 'D. Losses that are catastrophic. ' Ideally insurable risks should be accidental, definite and measurable, with a large number of similar exposure units to allow for the pooling of risks and predicting of losses.
Which of the following is not a type of risk management?
Risk elimination is not a type of risk management strategies.
What is not an element of contract?
Illegal consideration is not an essential elements of a valid contract.
Which of the following elements is not contained in an insurance?
Final answer:
A deductible is not an essential element of an insurance contract but rather a cost-sharing mechanism, while elements like offer and acceptance, consideration, capacitated parties, a legal purpose, and insurable interest are essential.