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Why risk of loss through an economic depression is not insurable?
Wiki User
∙ 11y ago
Insurance, in broad terms, is protection against risk. To calculate premium vs. payout, two things need to be known: how much liability is possible (what they have to pay out) and how likely it is to happen.
On a grand scale, things like when you die, how often you crash a car, or how often your house catches fire can be predicted statistically. The costs can be estimated and defined.
Loss through depression is impossible to price. There are too many variables to estimate loss with any reasonable amount of certainty, and the probability is unknown.
Additionally, you can't get insurance for something that is currently happening. We are in a depression (or recession, depends on your definition). No insurance company would ever insure against something currently happening (which is why you cant insure your house while it's on fire, a crashed car, or a stolen painting).
Wiki User
∙ 11y ago
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Is economic systems based on profit and loss?
The economic systems is based on profit and loss since they reflect the values of the economy in place.
What is the basis of Economic Systems?
Demand and loss
What is one of the downsides of increasing economic interdependence?
Economic interdependence can cause chain reaction such as the situation we are in right now. America's economy crashed due to the housing bubble and the other economys of the world crashed with America's.
What is three quarters of GDP loss?
It is simply three quarters of negative GDP. It could be a recession plus one quarter. Three quarter of negative GDP growth alone is NOT a depression. A depression really has no official definition, but if it did, it would be longer than three quarters. 4 quarters of GDP loss refers to a Depression. 3 quarters can refer to a country that is on the verge of a depression
The economic effects on Irish civil war?
loss of natural resources.
Is risk of loss through an economic depression insurable?
no its uninsurable
What is insurable loss?
insurable loss
When must an Insurable interest exist for a property insurance policy?
Insurable interest must exist at inception of the policy cover and at the time of the loss.
When must an insurable interest exist for property insurance?
An insurable interest must exist at the time the policy is purchased and when a claim is made. This means the policyholder must have a financial stake in the property being insured to prevent fraud or speculation in insurance. Without insurable interest, the policyholder would not suffer any financial loss from damage to the property.
World wide depression?
World wide depression refers to a time where the world was in economic despair. This included severe job loss, along with mass poverty and sickness. In the U.S., the depression struck in the late '20's and early '30's. This was the result of the stock market crash, which propelled the nation into extreme poverty and economic depression.
What is policy proof of interest in marine insurance?
A policu which presentation is itself the evidance or proof of Insurable Interest.In otherwords the evidance of Insurable Interest is not to be proved at the time of loss and putting the claim
Who started the Great Depression?
the people in general. general loss of confidence in the economic future caused the wall street crash of October 1929
Who did the Nazis blame for the economic depression and the loss of world war 1?
the communists. or generally the left. (see dolchstosslegende)
What challenges did the south face after the civial war?
Some of the challenges the south faced after the Civil War were: loss of homes, loss of food, water pollution from decaying bodies, theft, adn an economic depression.
Are pure risks always insurable?
Pure RisksPure risks, or those that have the possibility of loss or no loss, but no possibility of gain, are insurable, but there are criteria that must be met before they will be insured. So, no, they are not ALWAYS insurable. For example, a person who has been diagnosed with terminal cancer who attempts to acquire insurance will generally be refused. Though it is a pure risk because the person will either live (no loss) or die (loss), factors that determine eligibility for insurance are not met for that person. Likewise, a homeowner who has had previous fires in their homes may not be able to find insurance because they are considered too great a risk to insure, even though there will either be no fires (no loss) or there will be (loss) at their current home.There is another type of risk that is not insurable. Speculative risk, or risk with a possibility of gain, is that type of risk.
What is insurable interest in property insurance?
An insurable interest is required in order for any insurance to be valid. In general, an insurable interest exists when an individual or entity has a financial stake in the continued existence of the property.
What was the effect of the panic of 1873?
It caused an economic depression and loss of hope. It used to be called the Great Depression, before the Great Depression of the 1930's. It is now called the Long Depression. It also lead to conflict in the USA over the backing of money i.e. The Gold Standard vs The Free Silver Movement.
