Question

Insurance companies will usually only insure against which type of risk?

economic risk
investment risk
speculate risk
pure risk

Answer 1

D. Pure risk........

Answer 2

Insurance companies will usually only insure pure risk. Pure risk is the risk or the possibility of a loss. Insurance company would shoulder the expenses of the insured person or entity whenever there is a loss. They would only be willing to shoulder the possible loss of a person or entity out of pure risk.