Which one of the following statements is correct with respect to characteristics of insurable loss exposures?

Which one of the following statements is correct with respect to characteristics of insurable loss exposures? 




A. If the insured has control over whether or when a loss will occur, the risk is attractive to insure.
B. If losses are not fortuitous, premiums could increase for all policyholders.
C. If a loss is fortuitous, the chance of loss could increase as soon as a policy is issued.
D. Private insurance is suitable for risks where the probability and timing of loss is known.



Answer: B. If losses are not fortuitous, premiums could increase for all policyholders.

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