Which situation describes an insurable risk?

An insurable risk is characterized by its ability to be quantified, its random nature, and the potential for a financial loss that can be covered by insurance. In the context of this question, the situation involving a squadron of police cars best fits the criteria for an insurable risk.

Police cars, while inherently subject to various hazards, such as accidents or vandalism, can be insured because they represent a specific, identifiable asset. Their value can be assessed, the likelihood of certain events occurring can be statistically evaluated, and there are defined limits on the amount of coverage.

In contrast, the other options do not meet the same criteria. For instance, gold stored in Fort Knox is often deemed uninsurable due to the unique nature of the asset and its extraordinary level of security. A high-crime area generally presents risks that are too broad and unpredictable for insurance purposes, making it difficult to assess potential losses accurately. The riverbank, while it could theoretically face erosion or flooding, is a natural feature rather than an asset, so it may not fit into traditional insurable risk definitions as well as the squadron of police cars does.