Which of the following are the characteristics of pure risk?
Pure risk cannot be controlled and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved. Pure risks can be divided into three different categories: personal, property, and liability. Many cases of pure risk are insurable.
Which of the following is not a pure risk?
Answer: Technology risk. Explanation: Pure risks can be divided into three different categories: personal risk, property risk, and liability risk.
Which of the following is a pure risk?
Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain. Fires, floods and other natural disasters are categorized as pure risk, as are unforeseen incidents, such as acts of terrorism or untimely deaths.
What is are the characteristics of a pure risk ideally insurable risk?
Most insurance providers only cover pure risks, or those risks that embody most or all of the main elements of insurable risk. These elements are "due to chance," definiteness and measurability, statistical predictability, lack of catastrophic exposure, random selection, and large loss exposure.
Which of the following is NOT a characteristic of pure risk? a) The loss exposure must be large. b) The loss must be catastrophic. c) The loss must be due to chance. d) The loss must be measurable in dollars. 1 Approved Answer BASANT S answered on February 07, 2021 5 Ratings ( 11 Votes) option B is correct The loss must be catastrophic.
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