Which of these is NOT considered to be an element of an insurable risk?

An insurable risk typically exhibits certain characteristics that make it suitable for insurance coverage. These include being a pure risk, meaning that it involves situations where there are only the possibilities of loss or no loss, without the potential for gain, such as damage to property or life-threatening events. Moreover, an insurable risk must be quantifiable, allowing insurers to assess the risk and determine appropriate premiums based on statistical evaluations.

Speculative risk, in contrast, encompasses scenarios where there are chances of both gain and loss, such as investing in stocks or gambling. Because speculative risks often involve decision-making with uncertain outcomes that may lead to profits as well as losses, they do not fit the criteria for insurable risks. Insurers typically do not cover these types of risks because they are not predictable and lack the essential characteristics that lend themselves to risk pooling.

The other elements like pure risk, which is solely dependent on loss, along with calculable and limiting risks, encompass essential components that determine the viability of insuring an event. These factors help insurers create effective risk assessments and policies. Therefore, identifying speculative risk as not part of the insurable risk elements aligns with the fundamental principles of insurance underwriting.