Question
a.
The loss must be definite and measurable.
b.
The loss must be intentional and controlled by the insured.
c.
A sufficiently large number of homogenously exposed units.
d.
The cost of insurance must be very high.
Posted under IC38 Life Insurance Agent Exam
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. What is the fundamental requirement for a risk to be considered insurable according to the law of large numbers?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. Why is it important for a loss to be definite and measurable for insurance to make sense?
View solution
Q. What type of event must a loss be associated with to be considered insurable?
View solution
Q. What is the economic feasibility criterion for insurability?
View solution
Q. What is the final criterion for insurability related to public policy and morality?
View solution
Q. Which one of the following does not represent an insurable risk?
View solution
Q. Which elements are involved in the process of insurance?
View solution
Q. How is an asset defined in the context of insurance?
View solution
Q. What is represented by the term "risk" in insurance?
View solution
Q. What are hazards in the context of insurance?
View solution
Q. Which mathematical principle makes insurance possible?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.
Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!
