Q.A risk that involves only the possibility of loss or no loss, with no chance of gain, is called a:

Insurance normally covers only those risks that carry no possibility of gain — a fire or an accident can only leave you worse off or unchanged, never better.

Check each option against whether the risk can ever produce a gain.

A pure risk involves only two possibilities — loss or no loss — with no chance of gain (for example, fire, accident or death). This is exactly what the question describes. Because such risks can only leave the person worse off or unchanged, they are the kind insurance is designed to cover.

Option-by-option analysis:

• (a) Incorrect — a speculative risk carries three possibilities, including a chance of gain, and is generally NOT insurable.
• (b) Correct — a pure risk is precisely a loss-or-no-loss risk with no chance of gain.
• (c) Incorrect — a dynamic risk is classified by its cause (changes in the economy/society), not by whether gain is possible.
• (d) Incorrect — a financial risk is one measurable in money terms; that describes a different classification, not the loss-or-no-loss feature asked about.