What characteristic describes an insurance contract where payment of benefits depends on the occurrence of the insured risk?

The characteristic that describes an insurance contract where the payment of benefits is contingent upon the occurrence of the insured risk is best captured by the term "conditional contract." In these contracts, the insurer's obligation to pay benefits is dependent on certain events occurring, such as the death of the insured in a life insurance policy or a car accident in an auto insurance policy.

This means that the policyholder may not receive any benefits unless the specific conditions outlined in the contract are met. The aspect of these contracts being conditional is fundamental to understanding how insurance operates, as it distinguishes them from other types of agreements where outcomes or benefits may not hinge on such contingencies.

Other terms mentioned, like "contingent contract," do have relevance in discussing conditions of obligation. However, in insurance, "conditional" is the more precise term used to define the nature of the contract's coverage. A risk contract doesn't typically refer to the dependency on an insured event for payout, and a speculative contract usually involves situations where both profits and losses are possible, which is distinct from the predictable nature of insurance contracts.