A risk classified is uninsurable when the?

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

Explanation

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.