It is not possible to protect yourself from the consequences of pure risks.
Understand the Problem
The question is asking about the impossibility of protecting oneself from the consequences of pure risks, implying a discussion on risk management and insurance principles.
Answer
False. Pure risks can be insured against.
The statement is false. Pure risks can be protected against by insurance, as they involve only the chance of loss and no chance of gain.
Answer for screen readers
The statement is false. Pure risks can be protected against by insurance, as they involve only the chance of loss and no chance of gain.
More Information
Pure risks are insurable, meaning that insurance can cover the chance of loss they present. This differentiates them from speculative risks, which involve both the potential for loss and gain, and are not typically insurable.
Tips
A common mistake is confusing pure risks with speculative risks. Remember, pure risks only involve the possibility of loss.
Sources
- Elements of Insurable Risks: A Quick Guide - Investopedia - investopedia.com
- 1.4.1 Speculative and Pure Risks - American Safety Council - course.uceusa.com
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