Which of the following best describes a calculable risk in insurance?

A calculable risk in insurance refers to a situation where the potential losses can be estimated based on historical data and statistical analysis. This ability to predict losses is vital for insurance companies as it allows them to establish appropriate premiums and assess the likelihood of claims. By employing statistical methods, insurers can analyze past events to forecast future occurrences, making it feasible to form policies that effectively manage financial risk.

In contrast, a risk that cannot be estimated lacks the necessary data or predictability, which would hinder an insurer's ability to set terms for coverage. Options that suggest risks are automatically accepted or guarantee profits misunderstand the nature of risk; insurance deals with uncertainty and probability, rather than guarantees. Thus, the concept of calculable risk emphasizes the importance of statistical predictability in determining how insurance is structured and priced.