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Anthony wants to insure his investment in a chinchilla herd. Which of the following is the most compelling reason that an insurance company would not be likely to issue a policy? a. The risk is too high. O b. Live animals cannot be insured. c. The market value of the herd could go up as well as down; it is not a pure risk. Therefore it is not insurable. d. Chinchillas are an endangered species.

User Datps
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The most compelling reason that an insurance company would not be likely to issue a policy for insuring Anthony's investment in a chinchilla herd would be option C: The market value of the herd could go up as well as down; it is not a pure risk. Therefore, it is not insurable.

Insurance is typically designed to cover pure risks, which are risks that involve only the possibility of loss or damage without the potential for gain. In the case of Anthony's chinchilla herd, the market value of the herd could fluctuate, potentially resulting in both gains and losses. This introduces an element of speculative risk, which is not typically insurable.

Options A, B, and D are not as compelling in this scenario. While option A suggests that the risk may be too high, insurance companies often assess risks and determine premiums accordingly. Option B stating that live animals cannot be insured is not entirely accurate, as there are insurance options available for livestock and other live assets. Option D, mentioning that chinchillas are endangered species, does not inherently prevent insurance coverage, although it may have some impact on the availability or terms of coverage.
User Rockinfreakshow
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