The principle of insurance that demands that the insured must stand to loss in the event of a loss before taking a policy is
-
A.
consideration -
B.
insurable interest -
C.
proximate cause -
D.
subrogation
Correct Answer: Option B
Explanation
Insurable interest is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. it is the main reason an insurance contract is entered into