Which of the following is not true about an insurable risk?

An insurable risk is characterized by specific attributes that make it suitable for insurance coverage. One key characteristic is that the risk should not be excessive in magnitude. For a risk to be insurable, it should be manageable and predictable, allowing insurers to cover potential losses without facing catastrophic financial consequences. When risks are excessive, they become unmanageable, making it impractical for insurance companies to offer coverage.

On the other hand, insurable risks are typically common to many people, meaning that they affect a large number of individuals, which helps in pooling and sharing the risk among many policyholders. They should also be able to be calculated, allowing insurers to assess the likelihood of loss and determine premiums accordingly. Additionally, insurable risks need to be definite, meaning they should have clear terms regarding when and how losses occur, facilitating smoother claims processes.