XYZ Insurance Company writes coverage for most perils which can damage property. XYZ, however, does not write flood insurance on property located in flood plains. Which requirement of an ideally insurable risk might be violated if XYZ wrote flood insurance on property located in flood plains

Question

Shaniya Grant

Business

10 June, 15:57

XYZ Insurance Company writes coverage for most perils which can damage property. XYZ, however, does not write flood insurance on property located in flood plains. Which requirement of an ideally insurable risk might be violated if XYZ wrote flood insurance on property located in flood plains

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Armando Landry · Answer 1

An ideally insurable risk might be violated if XYZ wrote flood insurance on property located in flood plains because the loss should not be catastrophic.