An insurance applicant dying from cancer is not likely to be insured because:
A) the loss is not definite as to time and place
B) the probability of loss varies daily, ultimately reaching 1.0
C) the loss would be catastrophic for the insurer
D) the loss is certain to occur and the price for coverage would be uneconomical

Question

Quizplus · Accepted Answer

The insurance applicant dying from cancer would be considered a guaranteed loss, as the likelihood of the loss occurring is certain. The cost of coverage would be uneconomical for the insurer due to the certainty of the loss.

An Insurance Applicant Dying from Cancer Is Not Likely to Be