What is a key characteristic of a loss for it to be insurable?
Hint:
Consider the requirements for insurable risks
The loss must be certain and guaranteed
The loss must be definite and measurable
The loss must be catastrophic and affect the entire pool simultaneously
The loss must be economically infeasible
Explanation
A loss must be definite and measurable, meaning the time and amount of the loss must be determinable for it to be considered insurable.