GCECommerceInsurance2020

Which principle of insurance states that the insured must have a financial interest in the subject matter of insurance at the time of loss?

APrinciple of indemnity
BPrinciple of subrogation
CPrinciple of insurable interestCORRECT
DPrinciple of contribution
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Why the answer is C, and why the others tempt you.
The principle of insurable interest requires that the insured must stand to suffer a financial loss if the insured event occurs. Without insurable interest, an insurance contract is void. This interest must exist at the time of loss, particularly in non-life insurance.
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