Cila Loss Adjusting Exam Prep | United Kingdom

Which statement best distinguishes pure risk from speculative risk in an insurance context?

Pure risk involves only the possibility of loss or no loss, whereas speculative risk also includes the chance of gain Pure risk always produces a financial gain for the insured Speculative risk is the only type of risk that insurers will accept Pure risk and speculative risk are identical concepts in UK insurance law

Correct Answer:

Pure risk involves only the possibility of loss or no loss, whereas speculative risk also includes the chance of gain

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