Question

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT?

1) The loss must be accidental
2) The loss must be measurable
3) The loss must be fortuitous
4) The loss must be intentional

Answer 1

The requirement that does not apply to insurable losses is that the loss must be intentional. Insurable risks must be accidental, measurable, and fortuitous.

Step-by-step explanation:

Among the requirements for a loss to be insurable, intentional losses are not typically insurable. The correct nature of insurable losses includes that they must be accidental, measurable, and fortuitous. These elements reflect the unpredictability of future events and the nature of insurance as a tool for managing risk. Insurance underwriters need to estimate the risk of a loss occurring, which cannot be done with certainty if the loss is expected or intended. The unpredictable combination of people's characteristics, choices, and chance events make certain losses more suitable for insurance coverage than others.