Question: Most property insurance does not include coverage for a flood. a. Explain the Requirements of Insurable Risk that would be violated if property insurance covered

Most property insurance does not include coverage for a flood.

a. Explain the Requirements of Insurable Risk that would be violated if property insurance covered floods. (1-2 sentences)

b. Explain the violation. (1-2 sentences)

c. Explain what would happen to the private insurance market if property insurance did cover floods. Be specific about which component of the gross premium is affected. Use the market equation in your answer. (1-2 sentences)

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