n NISM Certifications
NSM General NISM
Medium

What does “exposure to risk” mean in insurance?

Practice question from IC 38 Mock Test 10 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A peril causes a loss

  2. B

    A person suffers loss due to a flood

  3. The asset must be exposed to the peril for loss to occur

    Correct answer

  4. D

    Insurance pays for exposure to risk alone

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

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