Multiple choice

Insurance is not gambling because of the presence of

  1. principle of utmost good faith

  2. insurable interest

  3. indemnity principle

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence, without impairment or damage, of the insured object (or in the case of a person, their continued survival). Hence, insurance is not gambling. 

Keep practicing — related questions