All of the following are programs to insure nondiversifiable risks EXCEPT
A)federal flood insurance.
B)auto physical damage insurance.
C)Social Security.
D)unemployment insurance.

Question

Quizplus · Accepted Answer

Auto physical damage insurance is a program to insure diversifiable risks, not nondiversifiable risks. Nondiversifiable risks are risks that affect a large portion of the population and cannot be avoided through diversification, such as natural disasters or economic downturns. Federal flood insurance, Social Security, and unemployment insurance are all programs designed to insure nondiversifiable risks.

All of the Following Are Programs to Insure Nondiversifiable Risks