What describes risks that do not meet qualifications for insurance?

• A. High-risk
• B. Uninsurable
• C. Excluded
• D. Non-standard

Answer: (B)

The term "uninsurable" accurately describes risks that do not meet the necessary qualifications for insurance coverage. This classification is typically used to identify scenarios or situations that are too hazardous or unpredictable for insurers to accept, making them ineligible for traditional insurance policies.

Uninsurable risks can arise from various factors, such as the nature of the activity, the lack of historical data to support underwriting, or specific characteristics inherent to the risk that make it unmanageable. For example, certain natural disasters, extreme sports, or high-risk occupations may fall into this category if they exceed the thresholds set by insurance companies.

In comparison, terms like "high-risk" often refer to individuals or entities that, while they may be insurable, represent a greater likelihood of a claim being filed. "Excluded" typically pertains to specific incidents or conditions that are not covered within an existing insurance policy, and "non-standard" is a term used for policies or insureds that do not conform to standard underwriting guidelines but still may receive coverage under specialized terms.