INSURABILITY Meaning and
Definition
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Insurability refers to the extent to which an individual, property, or risk can be considered suitable for obtaining insurance coverage. It is a term used in the insurance industry to assess the potential risk and determine whether insurance protection can be granted. The concept of insurability revolves around evaluating the probability and severity of potential losses and whether those losses can be covered by an insurance policy.
Insurability involves several factors that insurers consider when determining whether to provide coverage. These factors include the individual's or property's susceptibility to risk, such as health conditions, age, occupation, past claims history, or the condition and location of a property. Insurers assess insurability by analyzing these factors, as they impact the likelihood of a loss occurring and the potential financial burden it may pose.
Insurability is important in the insurance industry as it helps insurers assess the level of risk they are willing to assume. It aids in determining insurance premiums and policy terms, based on the individual or property's insurability rating. Individuals or properties with high insurability are more likely to secure insurance coverage at lower costs, as they are perceived as having lower risk. Conversely, those with low insurability may face higher premiums or limited coverage options, as they pose a higher risk.
In conclusion, insurability is a measure of the suitability of an individual, property, or risk for obtaining insurance coverage. It involves evaluating the potential risk, loss severity, and other relevant factors to determine the viability of providing insurance protection.
Common Misspellings for INSURABILITY
Etymology of INSURABILITY
The word "insurability" is derived from the noun "insure" combined with the suffix "-ability".
The noun "insure" comes from the Latin word "securus", meaning "safe" or "secure". In Late Latin, it further evolved into "securare", meaning "to make safe" or "to ensure". From there, it entered Old French as "ensurer" before being anglicized into "insure" in English during the 17th century.
The suffix "-ability" is used to form nouns indicating the quality or capacity of something. It is derived from the Latin suffix "-abilitas", which had a similar function.
Therefore, the combination of "insure" with "-ability" yields "insurability", which refers to the quality or capacity of being eligible or suitable for insurance coverage.
Similar spelling words for INSURABILITY
- inexorability,
- incredibility,
- Insurable,
- inexorably,
- inexorable,
- incurably,
- inaugural,
- ingraining,
- incurability,
- inscrutability,
- inauguration.
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