Which factor is NOT considered a pure risk?

Prepare for the USAA Licensing Exam with interactive flashcards and multiple choice questions, each featuring hints and explanations. Get exam-ready today!

C gambling losses are not considered a pure risk because pure risk refers to situations that can only result in loss or no loss, with no potential for financial gain. In the case of gambling, there is a possibility to win as well as to lose money, which introduces an element of speculative risk rather than pure risk.

On the other hand, the other factors listed—car accidents, workplace injuries, and natural disasters—are all examples of pure risks because they can only lead to negative outcomes (losses) such as damage to property, injury, or loss of life, without any chance of achieving a gain from them. Thus, these events are wholly associated with potential loss and are consistent with the definition of pure risk.

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