8 Questions
What is the definition of speculative risk?
Price uncertainty and the potential for losses in investments
What are the outcomes of speculative risk?
Nothing, a loss, or a gain
What is the most important type of risk for homeowners insurance purposes?
Property risk
What is the definition of pure risk?
The potential for losses where there is no viable opportunity for any gain
Pure risk can result in a profit or loss.
False
Personal risk can affect an individual directly, such as injury or death.
True
Speculative risk is usually beyond human control.
False
Property risk only refers to the loss that might affect a piece of property, such as a home or covered contents.
False
Test your knowledge of insurance risks with this quiz. Learn about the factors that insurance companies consider when determining the amount of risk involved in issuing a policy. Explore the concepts of speculative and pure risks and how they can impact businesses and insurers.
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