Which of the following is NOT an element of insurability?

The reason "guaranteed profit" is not an element of insurability lies in the fundamental principles of insurance. Insurance is designed to protect against loss, not to provide profit. The concept of insurability rests on certain core elements, which include insurable interest, accidental risk, and calculable loss.

Insurable interest requires that the policyholder has a legitimate stake in the insured property or person, ensuring that they would suffer a loss if damage occurs. Accidental risk refers to events that happen unexpectedly or unintentionally, which makes losses insurable. Calculable loss is the ability to estimate the potential financial loss and evaluate premiums accordingly, allowing for the creation of a viable insurance product.

In contrast, the notion of guaranteed profit suggests that the insured would receive more than they risked, which contradicts the principles of risk management and the purpose of insurance as a mechanism for protecting against unforeseen events rather than generating profit. This distinction is essential in understanding how insurance operates within the framework of risk and loss.