1. An insurance policy is a conditional contract because:

Certain conditions, such as paying premiums and filing proof of loss, must be met for benefits to be paid

A policy is conditional because both parties must meet certain conditions, such as paying premiums and filing proof of loss.

2. A morale hazard refers to:

An attitude of carelessness or indifference that increases the chance of loss

A morale hazard is a careless or indifferent attitude that increases the likelihood of a loss.

3. Choosing not to engage in an activity in order to eliminate its risk entirely is risk:

Avoidance

Risk avoidance eliminates a risk by not engaging in the activity that creates it.

4. Speculative risk differs from pure risk because it involves:

The chance of loss, no loss, or gain, and is generally not insurable

Speculative risk includes the chance of gain as well as loss and is generally not insurable, unlike pure risk.