Which of the following insurance principles states that a person must be in a position to suffer financially in the event of a loss?
-
A.
Proximate cause -
B.
Indemnity -
C.
Insurable interest -
D.
Subrogation
Correct Answer: Option B
Explanation
Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party.