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Principles of insurance quiz
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ex[plain the principle subrogation
once the insurance company has paid full compensation to the insured for a loss the insurance company has the right to any scrap value
explain the principle indemnity?
You cannot profit from an insurance claim
Explain the principle contribution
if you insure an asset with a number of insurance companies you will not recieve compensation from each
what is the fifth principle of insurance
subrogation
What is the fourth principle of insurance
contribution
what is the third principle of insurance?
indemnity
Explain the principal utmost good faith?
The applicant must tell the truth
Explain the term insurable interest?
The insured must gain from the existence of the item and suffer financially from its loss
what is the second principle of insurance?
Utmost good faith
What principle stops you from profiting from interest?
Indemnity
Can you profit from interest?
No
What is the first principal of insurance?
Insurable intrest


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