NISM 10B Investment Adviser Level 2 Notes
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Insurable Interest: Insurable interest requires the insured to suffer a financial loss if the insured event occurs.
Utmost Good Faith: Both parties in an insurance contract must disclose all material facts honestly.
Indemnity Principle: Insurance compensates only for the actual loss suffered, not for profit.
Proximate Cause: The dominant cause of a loss must be covered by the policy for a claim to be valid.
Subrogation: Insurer assumes the insured’s rights to recover losses from a third party after paying a claim.
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NISM 10B NISM Investment Adviser Level 2
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