Which type of risk is related to death, disability, or loss of property?

The correct answer is pure risk, which refers to situations that present only the possibility of loss or no loss, but no opportunity for profit. This category includes risks related to death, disability, or loss of property, as these events can result in a financial setback without any potential for a gain. Pure risk is typically associated with insurance products, where the focus is on protecting against unforeseen and adverse events.

Understanding pure risk is crucial in the context of insurance and risk management because it underscores the types of uncertainties that individuals and businesses face, which can be mitigated through insurance policies. For example, life insurance covers the risk of death, which means that if the event occurs, it results in a financial loss for the beneficiaries. Similarly, homeowners' or property insurance addresses risks related to the loss or damage of property.

The other types of risks mentioned do not fit this definition. Speculative risk involves situations where there is both the chance of loss and the possibility of gain, such as investments in stocks or businesses. Commercial risk typically pertains to the risks businesses face as they operate, including market fluctuations or legal issues, which can impact profitability but do not inherently involve the personal losses described in the question. Personal risk generally relates to risks affecting an individual's wealth or health