West Virginia Adjusters Practice Exam

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Study for the West Virginia Adjusters Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Practice this question and more.

Which of the following activities is a speculative risk?

Betting on a horse race
Insuring a vehicle
Purchasing homeowners insurance
Taking out a life insurance policy

The correct answer is: Betting on a horse race

A speculative risk is a risk that involves the possibility of gaining or losing something of value. Betting on a horse race is considered a speculative risk because there is no guarantee of winning or earning a return on the investment. Insuring a vehicle, purchasing homeowners insurance, and taking out a life insurance policy are all examples of pure risks, as they involve protecting against a potential loss rather than a potential gain.