Which of the following characteristics defines an insurable risk?

An insurable risk is characterized by being definite and measurable, which is crucial for the underwriting process. When a risk is definite, it means that the events triggering a claim can be clearly identified, such as specific incidents or accidents. Measuring these risks allows insurers to calculate premiums accurately and assess potential payouts based on statistical data.

Additionally, having a measurable aspect means that the extent of the loss can be quantified, allowing the insurer to establish clear terms for coverage and compensation. This contrasts sharply with risks that are vague or subjective, which complicates the ability to create a standardized insurance product.

This clarity and measurability enable both the insurer and the insured to have a mutual understanding of what is covered and under what conditions claims can be made, facilitating trust and transaction efficiency in the insurance process.