A measure of whether a person or property is an acceptable risk. An applicant who has met the standards set by an insurance company is deemed insurable.
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US: Acceptability to the company of an applicant for insurance.
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Acceptability to the insurer of an applicant for insurance. Able to be insured against. In principle one may insure against the financial consequences of any event where it is a matter of fortuity whether the event will occur or when it will occur. On cannot insure against the consequences of one’s deliberate acts or where insurance would be against public policy. In practice a risk may be uninsurable where (a) the prospect of widespread loss is too great for the insurer to accept, e.g., war damage to property on land; (b) the risk is entrepreneurial, e.g., the risk of a change of fashion rendering stock unsalable; and (c) the risk is too great or unquantifiable.
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MEDICAL,USA: Physical, moral, occupational, and financial characteristics of a risk that are evaluated by an insurance company to determine whether to insure the entity.
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UK,REFERENCE See: Insurable Risk.