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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Business

Josephine Paul

5 December, 22:34

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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Quinton Stephens · 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.