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Which principle of insurance is valid for life insurance


Principle of Insurable Interest According to this principle, you must have an insurable interest in the life that is insured. That is, you will suffer financially if the insured dies. You cannot buy a life insurance policy for a person on whom you have no insurable interest.

Which principles of insurance applicable to life insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.

Which principle of insurance is not applicable to life insurance?

The principle of indemnity is not applicable to life insurance because the insurer may pay any amount but the insured cannot be brought back to the same state. Also, the loss of a life is not measurable and no money can indemnify the loss of a life.




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Insurance Core Principles - Executive Summary www bis org/fsi/fsisummaries/icps pdf Effective mechanisms that protect the interests of consumers help to increase confidence in the financial system Efficient financial markets Market

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