A. extent of the loss can be calculated
B. risk will occur no matter the precaution taken
C. risk may not happen
D. insurance company cannot pay

Correct Answer: Option B

B. risk will occur no matter the precaution taken


Uninsurable risk is a condition that poses an unknowable or unacceptable risk of loss or a situation in which the insurance would be against the law. Insurance companies limit their losses by not taking on certain risks that are very likely to result in a loss.

In many cases, catastrophes, such as earthquakes, have become uninsurable risks. a situation for which an insurance company will not provide insurance, because, for example, it is certain to happen: A person suffering from a terminal illness is considered to be an uninsurable risk.

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