Insurance Risks Quiz
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Questions and Answers

What is the definition of speculative risk?

  • The potential for losses where there is no viable opportunity for any gain
  • The possibility of a loss that might directly affect an individual, such as injury or death
  • The possibility of a loss that might affect a piece of property, such as a home or covered contents
  • Price uncertainty and the potential for losses in investments (correct)
  • What are the outcomes of speculative risk?

  • A profit or loss
  • Nothing, a loss, or a gain (correct)
  • A loss or a gain
  • Nothing or a loss
  • What is the most important type of risk for homeowners insurance purposes?

  • Property risk (correct)
  • Personal risk
  • Speculative risk
  • Pure risk
  • What is the definition of pure risk?

    <p>The potential for losses where there is no viable opportunity for any gain</p> Signup and view all the answers

    Pure risk can result in a profit or loss.

    <p>False</p> Signup and view all the answers

    Personal risk can affect an individual directly, such as injury or death.

    <p>True</p> Signup and view all the answers

    Speculative risk is usually beyond human control.

    <p>False</p> Signup and view all the answers

    Property risk only refers to the loss that might affect a piece of property, such as a home or covered contents.

    <p>False</p> Signup and view all the answers

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