pure risk
Definition
Situation where there is a chance of either loss or no loss, but no chance of gain; for example either a building will burn down or it won't. Only pure risks are insurable because otherwise (where the chance of the occurrence of a loss is determinable) insurance is akin to betting and the insured may stand to gain from it—a situation contrary to the most fundamental concept of insurance. Also called absolute risk.
pure risk is in the Disaster Planning & Risk Management and General, Marine, & Life Insurance subjects.
pure risk appears in the definitions of the following terms: standard risk, absolute risk and speculative risk
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