Which one of the following is NOT an element of insurability?

The correct choice indicates that the risk of loss being a speculative risk is not an element of insurability. In terms of insurability, risk needs to be classified as a pure risk rather than a speculative risk. A pure risk involves situations where there is only the potential for loss (such as illness or property damage), while speculative risks involve both the possibility of loss and the possibility of gain (such as investing in the stock market). Insurability focuses on risks that are definite and quantifiable, which aligns with the nature of pure risks.

In this context, the other options outline characteristics essential for a risk to be insurable. For instance, the risk of loss must represent a financial hardship, meaning that the loss should have the potential to significantly affect an individual's financial situation. The chance of loss must be predictable, which allows insurers to estimate the likelihood of loss occurring and establish the necessary premiums. Lastly, loss must be calculable, ensuring that insurers can assess the potential severity of loss and maintain financial stability. Hence, these criteria play a fundamental role in determining whether a risk can be insured, emphasizing the importance of defining risks appropriately.