What is Pure Risk vs Speculative Risk? | Insurance Exam Prep

Pure risk involves only the possibility of loss or no loss (insurable), while speculative risk involves the possibility of loss, no change, or gain (not insurable). Insurance companies only cover pure risks because they can be predicted statistically and do not involve voluntary profit-seeking behavior. 📚 Learn more about Pure Risk vs Speculative Risk and other key terms for your LIFE-HEALTH-INSURANCE, PROPERTY-CASUALTY-INSURANCE exam at Open Exam Prep. 🎯 This term appears on: LIFE-HEALTH-INSURANCE, PROPERTY-CASUALTY-INSURANCE 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Pure Risk vs Speculative Risk definition: https://www.open-exam-prep.com/glossary/pure-risk-vs-speculative-risk 💡 Exam Tip: Pure risk = loss or no loss only (INSURABLE). Speculative risk = loss, no change, or gain (NOT INSURABLE). Insurance only covers pure risk. Gambling and investing = speculative. Fire, theft, death = pure. --- #insurance #examprep #financeexam #life-health-insurance #property-casualty-insurance