Asked by Michael McGuire on May 07, 2024
Verified
Because the types of losses that are expected and the types that are foreseeable or unforeseeable vary with the nature of an activity, insurance is classified according to
A) the targeted market of the insurer.
B) the identity of a policy's beneficiary.
C) the nature of the risk involved.
D) the personal interest of the insured.
Foreseeable
Refers to an event or condition that a reasonable person would anticipate and therefore expect to consider while making decisions.
Insurance
A financial product that provides protection against financial loss resulting from specific risks.
Nature of Risk
The inherent features and characteristics of risk, including its potential to lead to negative outcomes or loss.
- Become familiar with the variety of insurance coverage types (like casualty, liability, property, life) and the precise risks they are intended to safeguard against.
Verified Answer
AM
Aadit MeenegeMay 14, 2024
Final Answer :
C
Explanation :
Insurance is classified according to the nature of the risk involved because different activities and circumstances present different types of risks, which in turn affect the types of losses that can be expected, as well as those that are foreseeable or unforeseeable.
Learning Objectives
- Become familiar with the variety of insurance coverage types (like casualty, liability, property, life) and the precise risks they are intended to safeguard against.