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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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