There are many instances of insurance fraud. For example, Gloria Eun Hye Lee, 36, owned the Prince and Princess Pet Boutique in Las Vegas. Lee and her husband were facing huge financial problems and were bankrupt.
In an attempt to resolve the situation, Lee and her boyfriend, Kirk Bills, attempted to burn down the store and use her insurance money. However, the security cameras in the store captured the event and foiled her attempt at insurance fraud. Fortunately, the sprinklers doused the flames and no animals were killed. Lee was tried and was given a sentence of 5 to 14 years.
Explain which of the requirements of an insurable risk are met and which are not met by the arson peril?