Which of the following is NOT a major type of pure risk?

Which of the following is NOT a major type of pure risk?

• A. Personal risks
• B. Liability risks
• C. Investment risks
• D. Property risks

Answer: (C)

Investment risks are not considered a major type of pure risk because they primarily relate to the possibility of financial loss or gain, which falls under the category of speculative risks. Pure risks, on the other hand, involve situations that can lead only to loss or no loss, with no potential for financial gain. The major types of pure risks include personal risks, which encompass risks to individuals such as health or disability; liability risks, which pertain to the risk of facing legal claims due to negligence or harm caused to others; and property risks, which relate to the potential loss or damage to physical assets. Each of these categories focuses solely on circumstances that can result in a loss without an opportunity for profit, distinguishing them from investment risks, which involve uncertain returns on capital.

Investment risks are not considered a major type of pure risk because they primarily relate to the possibility of financial loss or gain, which falls under the category of speculative risks. Pure risks, on the other hand, involve situations that can lead only to loss or no loss, with no potential for financial gain.

The major types of pure risks include personal risks, which encompass risks to individuals such as health or disability; liability risks, which pertain to the risk of facing legal claims due to negligence or harm caused to others; and property risks, which relate to the potential loss or damage to physical assets. Each of these categories focuses solely on circumstances that can result in a loss without an opportunity for profit, distinguishing them from investment risks, which involve uncertain returns on capital.