n NISM Certifications
X NISM Series X
Medium

For a risk to be insurable, what is the basic requirement?

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

Options

  1. A

    Loss should be intentional

  2. Loss should be fortuitous

    Correct answer

  3. C

    Loss should be catastrophic

  4. D

    Loss should be indeterminable

Why this is the answer

An insurable risk must be accidental and outside the insured’s control, happening by chance.

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