Question

All of the following are insurable risks EXCEPT:

a) The risk of incurring dementia requiring long-term medical care
b) The risk of premature death
c) The risk of becoming ill and requiring hospitalization
d) The risk of one's home value decreasing due to a drop in market prices

Answer 1

The risk of one's home value decreasing due to a drop in market prices is not an insurable risk.

Step-by-step explanation:

Insurable risks are risks that can be covered by an insurance policy. They typically involve events or situations that are uncertain and have financial consequences. However, not all risks are insurable.

In this case, the only answer choice that is not an insurable risk is d) The risk of one's home value decreasing due to a drop in market prices. While insurance can protect against certain risks related to a home, such as damage from a fire or natural disaster, it does not cover the potential decrease in market value.

Therefore, the correct answer is d) The risk of one's home value decreasing due to a drop in market prices.