Definitions for insurable risk
in·sur·able risk

WikipediaRate this definition:0.0 / 0 votes

1. insurable risk

   Insurability can mean either whether a particular type of loss (risk) can be insured in theory, or whether a particular client is insurable for by a particular company because of particular circumstance and the quality assigned by an insurance provider pertaining to the risk that a given client would have.An individual with very low insurability may be said to be uninsurable, and an insurance company will refuse to issue a policy to such an applicant. For example, an individual with a terminal illness and a life expectancy of 6 months would be uninsurable for term life insurance. This is because the probability is so high for the individual to die within the term of the insurance, that he/she would present far too high a liability for the insurance company. A similar, and stereotypical, example would be earthquake insurance in California. Insurability is sometimes an issue in case law of torts and contracts. It also comes up in issues involving tontines and insurance fraud schemes. In real property law and real estate, insurability of title means the realty is marketable.

WikidataRate this definition:5.0 / 1 vote

1. Insurable risk

   An insurable risk is a risk that meets the ideal criteria for efficient insurance. The concept of insurable risk underlies nearly all insurance decisions. For a risk to be insurable, several things need to be true: ⁕The insurer must be able to charge a premium high enough to cover not only claims expenses, but also to cover the insurer's expenses. In other words, the risk cannot be catastrophic, or so large that no insurer could hope to pay for the loss. ⁕The nature of the loss must be definite and financially measurable. That is, there should not be room for argument as to whether or not payment is due, nor as to what amount the payment should be. ⁕The loss should be random in nature, else the insured may engage in adverse selection. Insurance is not effective for risks that are not insurable risks. For example, risks that are too large cannot be insured, or the premiums would be so high as to make purchasing the insurance infeasible. Also, risks that are not measurable, if insured, will be difficult if not impossible for the insurer to quantify, and thus they cannot charge the correct premium. They will need to charge a conservatively high premium in order to mitigate the risk of paying too large a claim. The premium will thus be higher than ideal, and inefficient. Passing of risk involves both party to the contract. The general rule is that unless otherwise agreed, risk passes with title. An agreement to the contrary may be either expressed or implied.

How to pronounce insurable risk?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say insurable risk in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of insurable risk in Chaldean Numerology is: 9

2. Pythagorean Numerology

   The numerical value of insurable risk in Pythagorean Numerology is: 5

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Insurable_Risk
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=insurable risk