A risk that conforms to the following criteria: The possible loss must be plainly explained; the loss must be accidental and significant enough to be considered a hardship to the insured; the loss must also be part of a similar group of risks, so as to make the loss foreseeable; the loss must not occur at the same time as multiple others; and finally, the insurer must be able to compute the probability of a loss and a realistic cost for the insurance.
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A risk which meets most of the following requisites (i) The loss insured against must be capable of being defined. (ii) It must be accidental. (iii) It must be large enough to cause a hardship to the insured. (iv) It must belong to a homogeneous group of risks large enough to make losses predictable. (v) It must not be subject to the same loss at the same time as a large number of other risks. (vi) The insurance company must be able to determine a reasonable cost for the insurance. (vii) The insurance company must be able to calculate the chance of loss.
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MEDICAL,USA: Potential of a foreseen loss to the insured that has the following conditions: loss not under the control of the insured, others are subject to the same loss, chance of loss is calculable, cost is economically feasible, would not affect all insureds at the same time, and has the potential to be a serious financial hardship if not insured.
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UK: Risk capable of being insured. A risk is only insurable when: (a) it is measurable in financial terms; (b) an insurable interest exists; (c) it exists in large homogeneous groups (see risk combination; (d) the probability of loss can calculated; (e) it is a pure risk; (f) it is of a fortuitous nature; (g) it is not against public policy to insure it; (h) the premium is a reasonable premium in relation to the individual’s financial risk; (i) it is not so widespread that it is beyond the scope of commercial insurance as with certain fundamental risks. An uninsurable risk is one that fails to meet some or all of these elements.
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US: The conditions that make a risk insurable are (a) the peril insured against must produce a definite loss not under the control of the insured, (b) there must be a large number of homogeneous exposures subject to the same perils, (c) the loss must be calculable and the cost of insuring it must be economically feasible, (d) the peril must be unlikely to affect all insureds simultaneously, and (e) the loss produced by a risk must be definite and have a potential to be financially serious.
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The exposure to significant, measurable accidental loss from identifiable perils. The exposure, while not catastrophic, must be shared by a sufficient number of potential insureds so that the cost of loss for one can be measured and affordably shared throughout the market.