Life & Health · Chapter 2 · Risk Types & Insurability

Pure Risk

Definition

A risk with only the possibility of loss — no chance of gain. The only insurable type of risk.

Example

Injury, illness, premature death — you can only lose.

Exam tip

Ask: "Can this situation result in a GAIN?" If yes → speculative → NOT insurable. If no → pure → insurable.

Easy to confuse with

These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.