QUESTION 5

Consider the following description of an insurance product: "Political violence is a significant risk in many countries; endangering people's lives, homes and livelihoods. MicroEnsure's political violence insurance covers the outstanding balance of a borrower's loan in the event that the customer's business is destroyed as a result of political violence or riots."This product protects clients from loss incurred as a result of:

a.Country Context

b.Moral Hazard

c.Poor Business Planning

d.None of these