Essay type questions:
Define the term insurance and state the principles of insurance.
Insurance is a contract where the insurer agrees in return for a premium to pay an agreed amount of money to the insured to make a loss, damage or injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event.
The principles of Insurance are:
1. Utmost good faith
2. Insurable Interest
3. Indemnity
4. Proximate cause
5. Subrogation
6. Contribution
7. Mitigation.