WAEC - Insurance (2016 - No. 18)
A risk classified is uninsurable when the
extent of the loss can be calculated
risk will occur no matter the precaution taken
risk may not happen
insurance company cannot pay
Uitleg
Uninsurable risk is a condition that poses unknowable or unacceptable risk of loss or a situation in which the insurance would be against the law. Insurance companies limit their losses by not taking on certain risks that are very likely to result in a loss.
In many cases catastrophes, such as earthquakes, have become uninsurable risks. a situation for which an insurance company will not provide insurance, because, for example, it is certain to happen: A person suffering from a terminal illness is considered to be an uninsurable risk.