Steve purchased an insurance policy for his wedding ring because it is an example of:

The decision to classify the risk associated with Steve's wedding ring as a pure risk is grounded in the nature of insurance and the types of risks that can be insured. A pure risk is defined as a risk that presents the possibility of loss or no loss, with no chance of gain. In this case, the wedding ring is valuable, and while it can be lost, stolen, or damaged, there is no scenario in which Steve would gain from this situation.

Insurance policies are designed to cover pure risks, as they aim to provide financial protection against events that could cause a loss, such as theft or damage to the ring. This aligns with the fundamental purpose of an insurance policy, which is to mitigate financial loss rather than to provide an opportunity for financial gain.

In contrast, the other types of risks mentioned, such as safe risks, sure risks, and speculative risks, do not appropriately describe the situation with the wedding ring. Safe risks suggest a low probability of loss but still involve potential gains or no loss scenarios, which do not apply here. Sure risks imply a certainty of loss, which may not accurately convey the variable nature of the risk related to the ring. Speculative risks involve situations where there is potential for loss or gain, such as