Which characteristic makes a risk suitable for coverage by a private insurer?
Explanation
An insurable risk must produce losses that are accidental from the insured's standpoint and definite enough to measure, drawn from a large pool of similar exposures, with a calculable chance of loss and an affordable premium. An intentional loss is not fortuitous and is excluded. A single event capable of wrecking the whole book is catastrophic exposure, which is exactly what insurers try to avoid or reinsure.
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