Chuck was 22 years old when he married Lucy. They had just graduated from State University; Chuck accepted a job with a national pest extermination company. Lucy worked for her uncles restaurant chain as a server and made more in salary and tips than Chucks salary. Both had promising futures and management potential in their respective jobs. Three years into the marriage, Chuck, Jr. (Junior) was born. After a short maternity leave, Lucy went back to work. They borrowed to purchase a new Audi Q7 because Lucy saw an article ranking it the best car for new moms. Chuck, Lucy and Junior settled into a small home that they were able to purchase given their combined incomes and Lucys father co-signing their loan. Chuck served as a volunteer fireman in the small community and in that capacity acted as an emergency medical technician (EMT) on frequent calls. Chuck and Lucy both loved watersports and quickly indoctrinated Junior with weekend trips to the lake. They felt they could afford a motorboat given that Chuck was provided a company truck.

Tragically, Lucy passed away when Junior was 6 years old. Chuck had to sell the house, the boat and the Audi. Chuck sold the house to Lucy's father, who allowed Chuck and Junior to stay there and pay rent.

After Lucy's death Chuck experienced a financial stress, he is concerned about being properly insured. He knows that there are many different types of insurers and various distribution channels for both P/C and L/H insurance. He has identified pre- mature death loss exposures.

Question

Fully describe your perception of, and any assumptions you make regarding that loss exposure. Identify and explain one of the characteristics of an ideally insurable risk (per your instructional materials) and explain how your loss exposure does or does not meet that characteristic?