Principles of Insurance Exam Study Notes

Principle of insurable interest - A person is said to have an 'insurable interest' when they stand to gain or benefit from the continued existence (safety) and well-being of the person or property insured, and would suffer a financial loss if there is damage to the person or property.
Insurable interest - Legal basis for deciding whether insurance can be taken or not
Insurable interest has to be proved at the following three stages: - In some cases only at the time of taking the policy - e.g. life insurance, In some cases at the time of taking the policy and also at the time of making the claim - e.g. property insurance, Only at the time of making the claim e.g. marine cargo insurance
Insurance is meant to indemnify (i.e. compensate for losses). According to the principle of indemnity, insurance should place the insured in the same financial position after the loss, as they enjoyed before it; not better.
The principle of indemnity makes sure that the insurance company compensates the insured only to the extent of the loss so that the insured does not profit from insurance

Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points