CAS Exam 6C Fall 2015, Question 6
Study guide: Exam 6C
In order for a risk to be insurable:
- i. It should have a sufficiently large number of insureds to make losses reasonably predictable.
- ii. Losses must be definite and measurable.
- iii. Losses must be fortuitous or accidental.
- iv. Losses must not be catastrophic (unlikely to affect a large number of insureds at the same time).
Part a (1 point)
Using each of the above criteria, discuss the insurability of Terrorism risk.
Part b (1 point)
Using each of the above criteria, discuss the insurability of Flood risk.
Answer this question and see the worked solution