Insurance companies typically do not sell term-life insurance policy for people over the age of 80,...

Insurance companies typically do not sell term-life insurance policy for people over the age of 80, and it is mainly because which of the following requirements of an insurable risk is NOT met?

	Calculable chance of loss
	Economically feasible premium
	Accidental and unintentional loss
	Determinable and measurable loss

Solutions

Expert Solution

Answer : Correct Option is Calculable Chances of Loss .

Reason :

Chance of loss should be calculable. The insurer must be able to calculate average frequency as well as the average severity of future losses with some accuracy.Since this cannot be determined with the people having age of 80 or more therefore this requirement of the insurable risk is not met .This requirement is necessary as to determine the proper premium that can be charged which is sufficient to pay all claims and expenses and earn a profit during the policy period.

jeff jeffy answered 1 year ago

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