Question

Reasons why a peril may be considered uninsurable and therefore excluded from insurance contracts include which of the following?I. The losses from the occurrence of the peril may be due to a predictable decline in value.II. The losses from the occurrence of the peril may be incalculable and catastrophic.A) I onlyB) II onlyC) both I and IID) neither I nor II

Answer 1

The correct answer is C) I and II.

The reasons why a peril may be considered uninsurable and therefore excluded from insurance contracts include the following: The losses from the occurrence of the peril may be due to a predictable decline in value and the losses from the occurrence of the peril may be incalculable and catastrophic.

A bad event can be considered an uninsurable peril. These could be potential dangers or bad events in your region or property.

Among those insurable perils, we find floods, earthquakes, infestations of rats or insects, landslides, and melting of ice.