One guideline to determine that a risk is generally insurable is:

Question

Quizplus · Accepted Answer

One of the guidelines to determine the insurability of a risk is that the loss must be measurable. This means that the loss should be quantifiable and able to be estimated accurately. If the loss cannot be measured, then it is difficult for an insurer to determine an appropriate premium and coverage amount. Therefore, choice letter A is correct. The other options are incorrect as they represent non-insurable risks - price changes are usually considered speculative risks and are not insurable, war is excluded from coverage under most insurance policies, and operational issues such as strikes are considered more of a business risk than an insurable risk.

One Guideline to Determine That a Risk Is Generally Insurable