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Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop,she...

Commerce
WAEC 2007

Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop,she did not tell the Insurance company that she cooks in the shop, but told the insurance company that she sells second hand clothes. Hence she insured her store against natural causes. Tope's shop got burnt yesterday by fire from the cooking pot.

Which of the following insurance principles was breached by Madam Tope?
  • A. Insurable interest
  • B. Contribution
  • C. Utmost good faith
  • D. Subrogation
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Correct Answer: Option C
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