What is one characteristic that defines adequate premiums in insurable risk?

Adequate premiums in insurable risk are defined by their ability to reflect the risk of loss associated with the coverage provided. This means that the amount charged for an insurance policy should be commensurate with the likelihood and potential severity of a loss occurring. If premiums do not adequately reflect these risks, the insurance company could face large financial losses, which may compromise its ability to remain solvent and fulfill its obligations to policyholders.

In the context of making insurance viable, it is crucial for premiums to align closely with the associated risks, allowing insurers to gather enough funds to cover potential claims while also accounting for administrative costs and expected profit. This balance ensures that insurance remains a sustainable service.

As for the other options, while they may seem relevant, they do not universally define what makes premiums adequate. Offering the lowest price does not guarantee that a premium is sufficient to cover potential losses. Regular calculations can help ensure that premiums stay current but do not inherently define adequacy. Lastly, providing coverage for all known risks can be an impractical approach and may lead to excessively high premiums that are difficult to sell. Thus, the focus on reflecting the risk of loss as a core characteristic stands out as the essential factor for determining adequate premiums.