Which of the following is NOT a requisite of an ideally insurable risk?

An ideally insurable risk should not be catastrophic as a requisite. In insurance, catastrophic risks—such as natural disasters or large-scale events—can lead to significant losses that exceed the capacity of insurers to cover. The nature of insurable risks is that they must be manageable and predictable to allow insurers to set premiums and maintain financial stability. If all insured events were catastrophic, it would create an imbalance in the pooling of risk and could lead to the collapse of the insurance mechanism.

On the other hand, risks that are definite and measurable allow insurers to evaluate and quantify the potential loss. Statistically predictable risks enable insurers to estimate the likelihood of certain events occurring, which is essential for setting premiums appropriately. Risks that arise due to chance (or accidental) are also crucial, as they should not be intentional or fraudulent; insurance operates on the premise that indemnification is provided for unforeseen and random occurrences.

Understanding these requisites helps in grasping the fundamentals of risk assessment and management within the insurance industry.