Uncertainty as to the outcome of an event when two or more possibilities exist.
- Pure Risk: The uncertainty or chance of a loss occurring in a situation that can only result in a loss or no change.
Speculative Risk: The uncertainty or chance of a loss occurring in a situation that involves the opportunity for either loss or gain.
Standard Risk: This applicant or insured is considered to have an average probability of a loss based on health, vocation and lifestyle.
Substandard Risk: This applicant or insured has a higher than average probability of loss, and may be subject to an increased premium.
