Which one of these is not considered to be an element of an insurable risk?

An insurable risk typically consists of several key elements: it must be a pure risk rather than a speculative risk, the potential loss should not be catastrophic to the insurer, and the loss must result from a chance event.

Pure risk involves situations that can only result in loss or no loss, such as theft, fire, or injury. Speculative risk, on the other hand, is inherent in activities that can result in either profit or loss, like investing in stocks or gambling, thus making them uninsurable. Because these risks do not meet the criteria of having a distinct possibility of loss without the chance of gain, they cannot be considered insurable.

In contrast, the other elements are crucial for risks to be deemed insurable. Specifically, a loss that cannot be catastrophic helps ensure that the insurer remains viable and can cover the claims made by policyholders. Additionally, requiring that losses occur due to chance helps ensure that the risks being insured are not foreseeable or controllable by the insured, which is essential for maintaining fairness and predictable outcomes in insurance.