Omeria, a Country in West Asia, Has an Unstable Government

Omeria, a country in West Asia, has an unstable government. Carmine Inc., a Canadian mining company, wants to purchase risk insurance to safeguard its interests while operating in Omeria. Nate, a manager at Carmine Inc., believes that Carmine Inc. should not purchase risk insurance. Which of the following statements supports Nate's beliefs?

A) Risk insurance is usually ineffective in safeguarding the interests of companies in politically at-risk countries.
B) Risk insurance often fails to protect companies against adverse events in the host country.
C) The cost of buying risk insurance is high for all degrees of political risks in a given country or industry.
D) There is no guarantee that Carmine Inc. will receive immediate compensation following an adverse event.