Question

Private insurers are reluctant to provide windstorm insurance on coastal properties. This is because the loss exposures fail to meet the criterion that ideally insurable exposures must be

Select one:

A. Fortuitous.

B. A large number of similar exposure units.

C. Independent and not catastrophic.

D. Definite and measurable.

Answer 1

Private insurers are reluctant to provide windstorm insurance on coastal properties because the loss exposures fail to meet the criterion that ideally insurable exposures must be definite and measurable.

Step-by-step explanation:

Private insurers are reluctant to provide windstorm insurance on coastal properties because the loss exposures fail to meet the criterion that ideally insurable exposures must be definite and measurable. In the case of windstorm insurance, it is challenging for insurers to accurately predict and measure the potential losses due to the unpredictable nature of windstorms. Unlike other types of exposures, such as car accidents or illnesses, which can be quantified and measured more accurately, the risk associated with windstorms is uncertain and difficult to assess.