The principles of insurance, types of cover, and how insurance helps trade.
Insurance protects against risk by pooling premiums to compensate those who suffer a loss.
Principles of insurance
Utmost good faith — disclose all relevant facts.
Insurable interest — you can only insure something you'd lose from.
Indemnity — compensation restores you to your position before the loss (no profit).
Pooling of risk — many pay premiums; the few who suffer losses are paid.
Contribution and subrogation apply where relevant.
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