WAEC Commerce 2013 Objective — Question 7
Question 7 of 50 from the West African Examinations Council (WAEC) Commerce 2013 Objective paper, with the correct answer and a full explanation.
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An insurance principle that prevents a person from insuring what he does not stand to lose, financially if the insured risk occur is
- A. indemnity
- B. insurable interestCorrect
- C. proximate cause
- D. subrogation
Explanation
Before a person can take an insurance cover for anything, he must have insurable interest, i.e. liability to financial loss in the case of an event.
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