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      Question

      Risks that affect simultaneously a great number of

      policyholders is called?
      A Partial Risk Correct Answer Incorrect Answer
      B Static Risk Correct Answer Incorrect Answer
      C Covariant Risk Correct Answer Incorrect Answer
      D Pure Risk Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Covariant risk arises when many farms/households in one area are adversely affected by a single phenomenon such as a natural disaster, epidemic, unexpected change in world prices, macroeconomic crisis or civil conflict.

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