Question

insurance is written to cover only which of the following?

a. speculative risk

b. pure risk

c. incidental risk

d. particular risk

Explanation:

Insurance is designed to cover pure risks, which involve only the possibility of loss (e.g., fire, accident). Speculative risks involve potential gain or loss (e.g., gambling, investing), and insurance does not cover them. Incidental and particular risks are not standard categories for insurance coverage focus.

Answer:

b. Pure risk