New York State Life Insurance Exam Questions Practice Question
Risks are generally NOT insurable if
Correct Answer: D
Rationale: Risks are generally not insurable when the loss is expected, as insurance is designed to protect against unforeseen events. If a loss is predictable, it becomes a certainty rather than a risk, making it uninsurable.
Option A is incorrect; insurable risks often involve many individuals experiencing similar losses, allowing for risk pooling. Option B is irrelevant; having another policy does not inherently affect insurability. Option C, while deductibles are common in insurance policies, does not determine whether a risk can be insured; they simply affect the cost-sharing aspect of the policy.
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