vi) The risk that a pregnancy will result in multiple births (twins, triplets, etc.) incurring unplanned expenses. (vii) The risk of an individual being killed by a malfunctioning self-flying aeroplane within the next 30 years.
2. Which of the following risks are insurable? For risks which are not insurable, explain why they are not insurable.
(i) The risk that a $10 Christmas decoration will be broken.
(ii) The risk that a borrower will need to pay interest on a debt.
(iii) The risk that the interest rate on a debt will increase.
(iv) The risk that an insurance company will have to pay too many losses.
(v) The risk that an individual is late for an important meeting.
(vi) The risk that a pregnancy will result in multiple births (twins, triplets,
etc.) incurring unplanned expenses.
(vii) The risk of an individual being killed by a malfunctioning self-flying
aeroplane within the next 30 years.
(viii) The risk that a dress will not be fashionable in two month’s time.
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