Question

Which of the following statements regarding (ideal) requirements of an insurable risk is/are correct?

a) The loss must be catastrophic
b) The loss must be fortuitous
c) The loss must be intentional
d) Both a and b

Answer 1

The correct statements regarding the requirements of an insurable risk are that the loss must be fortuitous and the loss must not be intentional.

Step-by-step explanation:

In order for a risk to be insurable, it must meet certain requirements. The correct statements regarding these requirements are:

1. The loss must be fortuitous. This means that the loss must occur by chance, and not be intentionally caused by the insured. For example, if someone intentionally causes a fire in their own home, it would not be an insurable risk.
2. The loss must not be intentional. Intentional acts are not covered by insurance. For example, if someone intentionally crashes their car, it would not be covered by their insurance.

So, the correct answer is option d) Both a and b.