Question: Why are most market risks, financial risks, production risks, and political risks considered difficult to insure by private insurers?

Why are most market risks, financial risks, production risks, and political risks considered difficult to insure by private insurers?

Step by Step Solution

★★★★★

3.65 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

These risks are generally uninsurable for several reasons First many of these ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

399-B-C-F-R-A-M (372).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

Buildings in flood zones are difficult to insure by private insurers because the ideal requirements of an insurable risk are difficult to meet. a. Identify the ideal requirements of an insurable...

Q:

Why is it difficult for insurers to satisfy the social acceptability of risk classification criteria?

Q:

Why is strategy implementation often considered the most difficult stage in the strategic-management process?

Q:

ASSIGNMENT TWO 1. Explain each of the following characteristics of a typical insurance plan. a. Pooling of losses b. Payment of fortuitous losses c. Risk transfer d. Indemnification Explain the law...

Q:

Risk management GROUP 8 1.a. Identify the approaches that insurers can use to deal with the problem of catastrophic loss exposures. b. Why are most market risks, financial risks, production risks,...

Q:

Why are most market risks, financial risks, production risks, and political risks considered difficult to insure by private insurers?

Q:

2. Explain the law of large numbers. 3. Pure risks ideally should have certain characteristics to be insurable by private insurers. List the six characteristics of an ideally insurable risk. 4....

Q:

1. Explain each of the following characteristics of a typical insurance plan. a. Pooling of losses b. Payment of fortuitous losses c. Risk transfer d. Indemnification 2. Explain the law of large...

Q:

rance (31) Surety bonds (31) Underwriting (28) mbers (23) Liability insurance (29) REVIEW QUESTIONS 3. 1. Explain each of the following characteristics of a typi cal insurance plan. a. Pooling of...

Q:

1. Explain each of the following characteristics of a typical insurance plan. a. Pooling of losses b. Payment of fortuitous losses c. Risk transfer d. Indemnification 2. Explain the law of large...

Q:

Complete the following: (a) 100 km/h = ___miile/hour; (b) 60 cm = ___inch; (c) 100 yard = ___meter.

Q:

Express the 1993 Social Security tax function as a piecewise function t(x), where x is the annual income. Graph the function. What are the coordinates of the cusps on the graph?

Q:

Imagine that Canada, the United States, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for (a) international businesses and (b) the...

Q:

9. The owner of the Red Fox Inn has developed a new menu for use in her establishment. Each menu item represents a complete meal. She has determined standard cost for each item and has kept careful...

Q:

Why do certain policies, such as universal life and variable life, contain substantial investment risk?

Q:

a. Explain the basic characteristics of universal life policies. b. Explain the limitations of universal life insurance. c. Compare and contrast the following features of universal life and indexed...

Q:

Which types of families are likely to have the least need for a large amount of life insurance?

Q:

The common stock of the C . A . L . L . Corporation has been trading in a narrow range around $ 1 0 5 per share for months, and you believe it is going to stay in that range for the next 6 months....

Q:

(Part A, B, C for requirement 2 are already correct) Consider the following information on Stocks I and II: Calculate the beta and standard deviation of Stock I. (Do not round intermediate...

Q:

help please 14. [40.15 Points] DETAILS BBUNDERSTAT12 6.2.0233. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Sketch the area under the standard normal curve over the indicated interval and find the...