Compare and contrast the platforms of the Republican and Democratic parties in 1932. The republicans felt they could not reject hoover or his policies. They nominated hoover and vice president curtis on the first ballot. It warned against the dangers to business if the democrats came to power. It supported prohibition. It stood 'pat'-hoping. 3.Gambling needs luck, and there are people who are born lucky while speculation requires skills, and skills are learned through time. 4.Speculation requires hard work compared to gambling. 5.Speculation needs study while gambling can be done without the use of much thinking. Lesson 1: basic principles of life and health insurance and the insurance industry Insurance provides protection from the exposure to hazards and the probability of loss. Risk is defined as the possibility of loss or injury, and insurance is concerned with the degree of probability of loss or injury.

1. Compare And Contrast Insurance Gambling And Speculation Company
2. Compare And Contrast Insurance Gambling And Speculation Definition

1.4.1 Speculative and Pure Risks

Insurance provides protection from the exposure to hazards and the probability of loss. Risk is defined as the possibility of loss or injury, and insurance is concerned with the degree of probability of loss or injury. We're now going to unravel the complexity of speculative risks and pure risks.

Risk = Possibility of loss

Insurance = Probability of loss

Compare And Contrast Insurance Gambling And Speculation Company

Only pure risks are insurable because they involve only the chance of loss. They are pure in the sense that they do not mix both profits and losses. Insurance is concerned with the economic problems created by pure risks. Speculative risks are not insurable.

Both speculative risk and pure risk involve the possibility of loss. However, speculative risk also involves the possibility of gain as well - even if there is no loss. In order to understand why, you will need to understand the difference between the two.

Investing in the stock market is an example of a speculative risk. One can only speculate on whether the investment will produce a profit or a loss. Insuring an automobile is an example of pure risk. If the insured auto is involved in an auto accident, there is most definitely going to be some sort of damage (loss). On the other hand if no accident occurs, there is no possibility of gain. And that's the difference.

Speculative risks involve the possibility of loss and gain.

Compare And Contrast Insurance Gambling And Speculation Definition

Pure risks involve the possibility of loss only.