Final answer:
Suitability in insurance transactions is satisfied by separating insurance buyers into risk groups and charging them accordingly.
Step-by-step explanation:
In insurance transactions, suitability is often satisfied by insurance companies separating insurance buyers into risk groups and charging them accordingly. This means that insurance companies may choose not to sell insurance to those who pose high risks.
Another scenario is that individuals with low risks may be required to buy insurance, even if they have to pay more than the actuarially fair amount for their risk group.