which of the following principls stipulates that the insured must be in a position to...
COMMERCE
WAEC 2015
which of the following principls stipulates that the insured must be in a position to suffer financial loss?
- A. indemnity
- B. proximate clause
- C. insurable interest
- D. subrogation
Correct Answer: C. insurable interest
Explanation
Insurable interest is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. Insurable interest is an essential requirement for issuing an insurance policy which makes the entity or event legal, valid and protected against intentionally harmful acts. People not subject to financial loss do not have an insurable interest.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *