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For example, a person who has been diagnosed with terminal cancer who attempts to acquire insurance will generally be refused. Though it is a pure risk because the person will either live (no loss) or die (loss), factors that determine eligibility for insurance are not met for that person. Likewise, a homeowner who has had previous fires in their homes may not be able to find insurance because they are considered too great a risk to insure, even though there will either be no fires (no loss) or there will be (loss) at their current home.
There is another type of risk that is not insurable. Speculative risk, or risk with a possibility of gain, is that type of risk.
What else can I help you with?
Are all risks are insurable?
yes, it is
Why is the distinction between insurable and uninsurable risks significant for the theory of profit?
why is the distinction between insurable and uninsurable risks is significant for the theory of profit
What are the three major types of insurable risks?
heads class
What is the difference between pure and speculative risk?
1. Pure Risk situations are those where there is a possibility of loss or no loss. There is no gain to the individual or the organization. WHERE AS Speculative Risks are those where there is a possibility of gain as well as loss. The element of gain is inherent or structured in such a situation. 2. Pure risks are generally insurable while the speculative ones are not. 3. The conceptual framework of the risk pooling can be applied to the pure risks, while in most of the cases of speculative risks where it is not possible. However, there may be some situation where the law of mathematical expectation might be useful. 4. Speculative risk carry some inherent advantages ti the economy or the society at large while pure risks like uninsured catastrophes may be highly damaging. 5. In pure risk, for example - a car meet with an accident or it may not meet with an accident. If the insurance policy is bought for the purpose, then if accident does not occur, there is no gain to the insured. Contrarily, if the accident occurs, the insurance company will indemnify the loss. In speculative risk, for example - if you invest in the stock market, you may either gain or lose on stocks.
What are the major Categories of risks?
Pure and speculative risks
What are pure risks in project management?
Pure Risks are those risks that cause only losses. Typically, most of these Pure Risks are Insurable. They can be further sub-classified as: a. Direct Property Damage Risks - Risks that arise out of property damage due to natural calamities like floods, fire etc b. Indirect Property Damage or Losses. Ex: Business Operations are disrupted, Removal of Debris due to a direct property damage, inability to finance expenses etc c. Legal Liabilities - Lawsuits for injury to people or damages claimed due to faulty design etc d. Personnel Related - Injury and liability due to injury to employees which includes medicaltreatment, maintenance as well as replacement labor cost
What is insurable loss?
insurable loss
Why are risks insurable or not?
because the speculative (dynamic) Risk is a situation in which either profit (gain) or loss is possible.
Distinctions between insurable and uninsurable risks?
If I understand your question correctly, each insurance company has a list of unacceptable vehicles and unacceptable drivers. These lists are different for each carrier.
What do you understand by the term risk assessment?
Defining the exposure to risk a company, individual, family or other group faces. This would include insurable and uninsurable risks, and would include the degree of risk and possible contributing factors.Answer:To have a careful inspection on the various factors that can bring risks.
What are the potential risks and benefits of consuming pure caffeine extract?
Consuming pure caffeine extract can have potential risks and benefits. Risks include increased heart rate, anxiety, and potential overdose. Benefits may include increased alertness and improved physical performance. It is important to use pure caffeine extract in moderation and consult a healthcare professional before consuming.
Insurable interest is a legal right to insurer discurse?
insurable intrest is a legal right to insurer? discurse.
