JAMB - Commerce (2025 - No. 10)
An insurance principle that prevents a person from insuring what he does not stand to lose financially if the insured risk occurs is
proximate cause
indemnity
insurable interest
subrogation
Explication
The principle of insurable interest states that the person getting an insurance policy must have a legitimate interest in the
preservation of the life or property insured. That is, they stand to lose financially if the insured risk occurs. This principle
prevents people from taking out insurance policies on things they do not own or have no financial stake in.
preservation of the life or property insured. That is, they stand to lose financially if the insured risk occurs. This principle
prevents people from taking out insurance policies on things they do not own or have no financial stake in.