Exam term

Speculative risk

A risk with three possible outcomes: loss, no loss or gain, as in gambling or buying stock. Insurance does not cover it because it is meant to restore, not to let anyone profit.

Lessons that use this term

Insurance, risk, and peril California
Risk, exposure, hazard, peril, and loss, and the methods of handling risk New York
Elements of insurable risk, adverse selection, the law of large numbers, and reinsurance New York