Q20
Which of the following is not the principle of insurance:
A.
Utmost Good Faith
B.
Principle of Contribution
C.
Maximization of Profit
AnswerD.
Causa Proxima
Answer: Option C
Solution
Answer: Option C
Solution:
Maximization of Profit is not the principle of insurance. There are seven basic principles that create an insurance contract between the insured and the insurer: Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution and Loss Minimization.