General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An applicant asks for coverage that would pay the cost of a routine annual physical examination that she plans to schedule in six months. In insurance terms, this request:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An insurable risk situation requires the possibility of an accidental, unplanned loss. A scheduled routine physical is a certain, planned expense — there is no uncertainty about whether it will occur. Insurance is designed to cover contingent losses, not predictable budget items. This is why routine preventive care is handled through specific policy benefits and wellness provisions rather than as an insurable risk: the fortuity element is absent.
Why the other options are wrong
- B) Not all medical expenses are insurable risks; the planned physical lacks the uncertainty that a true risk situation requires.
- C) The physical is a certain expense, not a speculative risk with a chance of gain; diagnostic results do not create insurable risk.
- D) Knowing an expense is coming is not dishonesty or carelessness; the issue is the absence of fortuity, not a moral hazard.
Memory hook
A planned checkup is a budget line, not a risk. Insurance insures the 'maybe,' not the 'for sure.'