Which of the following is an example of pure risk?

Prepare for the Connecticut Life and Health Insurance Exam with our interactive flashcards and multiple choice questions. Each question is equipped with hints and explanations to ensure your success. Master your exam readiness today!

Pure risk refers to situations that can only result in a loss or no change; there is no opportunity for gain, as opposed to speculative risks where there is a chance of profit alongside the possibility of a loss. In the context of the options provided, getting injured is a clear example of pure risk because it carries the potential for only negative outcomes, such as financial costs related to medical bills and loss of income.

In contrast, investing in stocks and starting a business both involve speculative risks, as they have the possibility of generating profit. Similarly, gambling in a casino presents a scenario where there is not only the risk of loss but also a chance for financial gain, placing it outside the realm of pure risk.

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