Question
State the principle of insurance to which each of the following statement relate.
(a) There is a close connection between the cause of loss and the actual risk insured against for compensation to be effected.
(b) A person can only insure property whose destruction would resort to a financial loss to him/her.
(c) Restoring the insured to the financial position he/she was in just before the risk occurred.
(d) Whatever remains of the property insured after compensation becomes the property of the insurer.
(a) There is a close connection between the cause of loss and the actual risk insured against for compensation to be effected.
(b) A person can only insure property whose destruction would resort to a financial loss to him/her.
(c) Restoring the insured to the financial position he/she was in just before the risk occurred.
(d) Whatever remains of the property insured after compensation becomes the property of the insurer.
Answer
a) Proximate cause
b) Insurable interest
C) Indemnity
d) Subrogation
b) Insurable interest
C) Indemnity
d) Subrogation
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