1. A pure risk differs from speculative risk in that
I. it is associated only with the occurrence of physical loss.
II. most pure risks are insurable, whereas most speculative risks are not insurable.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
2. Liability risk is very important because:
I. people are more inclined to sue today than in past times.
II. a judgment can not only wipe out accumulated assets, but can also place a lien on future earnings.
A. I only
B. II only
C. Both I and II
D. Neither I nor II