For a risk to be insurable, several things need to be true:
Insurance is not effective for risks that are not insurable risks. For example, risks that are too large cannot be insured, or the premiums would be so high as to make purchasing the insurance infeasible. Also, risks that are not measurable, if insured, will be difficult if not impossible for the insurer to quantify, and thus they cannot charge the correct premium. They will need to charge a conservatively high premium in order to mitigate the risk of paying too large a claim. The premium will thus be higher than ideal, and inefficient.
Will insurable interest case be sea change or mere ripple? Estate planning could be altered in many states.(Insurable interest under analysis)
Apr 11, 2005; WILL A MARYLAND COURT CASE turn out to be a sea change or merely a ripple? Those watching a case currently before the Court of...