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An insurance principle that prevents a person from insuring what he does not stand to...

Commerce
WAEC 2013

An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is

  • A. indemnity
  • B. insurable interest
  • C. proximate cause
  • D. subrogation
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Correct Answer: Option B
Explanation

Insurable interest; A principle that states that an insured may not collect more than its own financial interest in property that is damaged or destroyed.


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