Which of the following is NOT an element that makes a risk insurable?

The concept of insurable risks is rooted in certain fundamental elements that must be present to make them suitable for insurance coverage. The correct choice reflects an aspect that does not align with these foundational principles.

A key element of an insurable risk is the measurable value of the loss, which allows insurers to ascertain the potential financial impact of a claim. This ensures that the insurer can evaluate the risk accurately and set appropriate premiums.

The accidental nature of the event is also crucial because insurance is designed to cover unforeseen incidents rather than events that are expected or certain to happen. This characteristic helps maintain the integrity of the pool of insured individuals and ensures that insurance can function as a risk-sharing mechanism.

Having a defined time and location of loss enables precise identification of when and where an event occurs, which is vital for the claims process and helps insurers manage risks effectively.

In contrast, a low likelihood of occurrence does not adequately define an insurable risk. Insurers generally focus on risks that have a moderate likelihood of occurring; if the likelihood is too low, the event may not be considered a viable risk for insurance purposes. Insurers need enough exposure to risks to gather sufficient data, assess trends, and manage the overall risk pool effectively, which is not achieved when the occurrence rate