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Commerce · Q212

Insurance

Graduate and Post Graduate · Commerce · question 212

Q212

Which of the following is not a risk fit for insurance?

A.
Early death
B.
Early death in an accident
C.
Disability
D.
Natural wear and tear to an asset
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Natural wear and tear to an asset is not to be included in insurance. A wear and tear exclusion states that the normal, expected deterioration of the insured object will not be covered by an insurance policy.