n NISM Certifications
X NISM Series X
Medium

For a risk to be insurable, there must be a large number of exposure units that are similar and subject to the same peril, ensuring the risk is spread over a broad base.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Small; Similar

  2. B

    Small; Different

  3. Large; Similar

    Correct answer

  4. D

    Large; Different

Why this is the answer

Insurable risks require a large pool of similar exposure units to diversify risk and make the risk insurable.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.