Question on: JAMB Commerce - 2024

The principles of insurance are fundamental guidelines that govern the operation of insurance contracts. Let's analyze each option:

A. Insurable interest: This is a core principle. The insured must have a financial or economic interest in the subject matter of the insurance.

B. Particular average: This term relates to marine insurance and refers to a partial loss to the cargo or vessel, typically due to a peril of the sea. It is a concept within marine insurance, not a general principle of insurance.

C. Utmost good faith (uberrimae fidei): This is a crucial principle. Both the insurer and the insured must act honestly and disclose all material facts.

D. Subrogation: This is also a principle. It gives the insurer the right to step into the shoes of the insured and pursue any legal claims the insured has against a third party who caused the loss.