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

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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.

Because the Types of Losses That Are Expected and the Types