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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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