What does Requirements of Insurable Risk mean? Read on to discover the definition & meaning of the term Requirements of Insurable Risk - to help you better understand the language used in insurance policies.
Requirements of Insurable Risk
The requirements of insurance risk are the elements that an insurance company considers before crafting and selling a policy. Knowing these elements safeguard the company from suffering a catastrophic financial loss or being taken advantage of by the insured.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Requirements of Insurable Risk. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: