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.
What is considered 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.
Which of the following is not a pure risk quizlet?
Which of the following is not a pure risk? Risk of financial loss caused by bodily injury or property damage to others'.
What are the four types of pure risk?
Pure risks can be divided into three different categories: personal, property, and liability. There are four ways to mitigate pure risk: reduction, avoidance, acceptance, and transference.
What is an example of pure risk?
Pure risk, also known as absolute risk, is a category of hazard in which the outcomes are a loss or no loss, and there is no opportunity for gain. Examples of pure risk situations include premature death, identity theft, and career-ending disabilities. ... Individuals transfer part of a pure risk to an insurer.
Which type of risk is not generally insurable?
A catastrophic risk (e.g. nuclear explosion) is not generally insurable because the losses would be too great for a private insurer to underwrite. Which of the following places insurance with a non-admitted insurer when insurance cannot be placed with an admitted insurer?
What is the difference between pure and catastrophic risk?
A pure risk is one that may only result in a loss or no loss. Because there is no chance of gain, the risk is insurable. A catastrophic risk (e.g. nuclear explosion) is not generally insurable because the losses would be too great for a private insurer to underwrite.