General Insurance
Why is a bet on a horse race not an insurable risk?
Answer and explanation
Answer: C. Insurance addresses pure risk, where the only outcomes are loss or no loss. A speculative risk carries the possibility of gain, which is why wagers fall outside insurance whatever their size or duration.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, pure and speculative risk
More general insurance questions
- An owner wishes to transfer a life policy to another person. Why does the personal contract character of insurance matter here?
- How do stock and mutual insurance companies differ in ownership and distributions?
- How does a warranty differ from a representation in insurance law?
- How does the principle of indemnity apply differently to life insurance than to property insurance?
- In the law of agency as it applies to insurance, who is the principal?
- In the law of agency, what is the relationship between an insurer and its appointed producer?
621 New York questions like this one.
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