n NISM Certifications
NSM General NISM
Medium

What are the six broad requirements for a risk to be considered insurable?

Practice question from IC 38 Mock Test 20 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Homogeneous units, predictable losses, accidental loss, small percentage of insured group suffers loss, economic feasibility, and public policy

    Correct answer

  2. B

    Law of large numbers, fortuitous loss, economic feasibility, public policy, predictable losses, and homogenous units

  3. C

    Risk pooling, economic feasibility, fortuitous loss, and public policy

  4. D

    Predictable losses, accidental loss, small percentage of insured group suffers loss, and public policy

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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