Assume that the chance of loss is 3 percent for two different fleets of trucks.

1.Assume that the chance of loss is 3 percent for two different fleets of trucks. Explain how it is possible that objective risk for both fleets can be different even though the chance of loss is identical. (50 points)Rubric: in this question, 25 points will be given for explanation of how the chance of loss is identical, and 25 points will be given for explanation of how the objective risk can be different.2.Buildings in flood zones are difficult to insure by private insurers because the ideal requirements of an insurable risk are difficult to meet. (50 points)a.Identify the ideal requirements of an insurable risk. (25 points)b. Which of the requirements of an insurable risk are not met by the flood peril?