Which of the following factors could make a risk uninsurable by an admitted insurer?

The correct choice is based on the fundamental principles of underwriting and risk assessment. Insurers are in the business of managing risk, and the likelihood of a loss is a primary concern when they determine whether they can provide coverage for a particular risk.

When a risk is deemed to have a higher probability of loss, it becomes less favorable for an admitted insurer to underwrite. Admitted insurers are those that are licensed in a particular state and are subject to regulations that require them to offer coverage based on specific guidelines, including maintaining a balance in their risk pool. If a risk presents a significantly higher likelihood of loss, it may be viewed as uninsurable due to the potential for frequent claims, which could jeopardize the insurer's financial stability and compliance with regulatory requirements.

This aligns with the principles of risk categorization; higher risk typically leads to either denial of insurance or the need for significantly elevated premiums, which may not be acceptable or advantageous for the insurer. Therefore, a higher risk of loss can effectively lead to the conclusion that a risk is uninsurable by an admitted insurer.

In contrast, other factors such as a low likelihood of loss or compliance with all safety regulations typically make a risk more insurable. Having existing coverage with another insurer does not