What are the kinds of insurable risks?
1) Personal risks – life or health risks
2) Property risks – loss or damage to property
3) Liability risks – involve liability of the insured for an injury caused to the person or property of another
What are the requirements in order that a risk be insurable?
1) The loss to be insured against must be important enough to warrant the existence of an insurance contract
2) Risk must permit a reasonable statistical estimate of the chance of loss in order to determine the amount of premium to be paid
3) The loss should be definite as to cause, time, place and amount
4) The loss is not catastrophic
5) Risk is accidental in nature