Question

Which of the following risks can Property and Casualty Insurance be utilized to handle?

Option 1: Pure risks.
Option 2: Speculative risks.
Option 3: Both pure and speculative risks.
Option 4: Neither pure nor speculative risks.

Answer 1

Property and Casualty Insurance can be used to handle pure risks, which involve only the chance of a loss or no loss. Examples include damage to property due to fire, theft, or natural disasters.

Step-by-step explanation:

Property and Casualty Insurance can be utilized to handle pure risks. Pure risks are risks that involve only the chance of a loss or no loss, and do not offer the possibility of a gain. Examples of pure risks that Property and Casualty Insurance can cover include damage to property due to fire, theft, or natural disasters.