The foundational rule of insurance is the principle of indemnification, which states that insurance policies are designed strictly to restore you to the exact financial position you were in prior to a loss, without allowing you to profit from the event. Other core rules include the principle of insurable interest (you must suffer a genuine financial loss from an event to insure against it) and the requirement of utmost good faith, requiring full honesty during applications.
1 votes
Marked as accepted