Answer:
D. A natural disaster
Explanation:
Natural disasters such as floods, earthquakes, and wars occur intermittently and usually with high losses. An accurate estimation of their frequency and the severity of losses is not impossible. Due to these reasons, private insurance companies do not cover natural disasters.
When natural disasters strike, there are likely to affect many people at the same time. Insurance companies may be unable to compensate all of them for the extensive losses. The principle through which insurance companies operate will be de
