What kinds of risks can't be insured?
What will be an ideal response?
Insurance works because the risks of adverse outcomes are independent, that is, one person suffering a loss does not affect the likelihood that other people will suffer similar losses. If the losses from an event are not independent, so that "everyone" suffers a loss at the same time, then the risk of loss cannot be insured.
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Deposit insurance is a protection for bank depositors up to a certain amount which is guaranteed by the federal government
Indicate whether the statement is true or false
Pair-wise majority voting eliminates which problem?
A. Majority options problem B. Swing-vote problem C. Misalignment problem D. Third party problem
If a monopolist is producing at an output rate at which P = ATC, then
A. it is minimizing its losses. B. its economic profit will be zero. C. its economic profit will be positive. D. it is maximizing its profits.
Regulation that is based upon the cost of providing the good or service is known as
A. rate-of-return regulation. B. cost-of-service regulation. C. deregulation. D. social regulation.