In insurance terms, the risk of suffering a disability is best described as what type of risk?

Financial
Fundamental
Homogenous
Speculative

The correct answer is: B. Fundamental

A fundamental risk is a risk that is inherent in the nature of the business or activity. It is a risk that cannot be avoided or reduced, and it is a risk that all businesses or activities face.

The risk of suffering a disability is a fundamental risk because it is a risk that is inherent in the nature of being human. Everyone is at risk of suffering a disability, and there is no way to avoid or reduce this risk.

The other options are incorrect because they do not accurately describe the risk of suffering a disability.

  • Financial risk is a risk that arises from the possibility of financial loss. The risk of suffering a disability can lead to financial loss, but it is not a financial risk in itself.
  • Homogeneous risk is a risk that is shared by a large group of people. The risk of suffering a disability is not a homogeneous risk because it is not shared by a large group of people.
  • Speculative risk is a risk that has the potential for both gain and loss. The risk of suffering a disability is not a speculative risk because it only has the potential for loss.