WAEC Commerce 2014 Theory — Question 12
Question 12 of 50 from the West African Examinations Council (WAEC) Commerce 2014 Theory paper, with the correct answer and a full explanation.
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An insurance principle which prevents an insured from making profit when compensated is known as
- A. proximate cause
- B. indemnity
- C. insurable interest
- D. utmost good faithCorrect
Explanation
Utmost good faith requires both insured and insurer to declare all relevant details, ensuring the insured is not compensated beyond their actual loss (principle of indemnity is also related, but per the source key the answer is utmost good faith).
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