Question:
Which of the following principles distinguishes an insurance contract from a wagering contract?
Which of the following principles distinguishes an insurance contract from a wagering contract?
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Insurable Interest is what legally differentiates insurance from gambling.
Updated On: Jan 17, 2026
- Causa Proxima
- Indemnity
- Insurable Interest
- Subrogation
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The Correct Option is C
Solution and Explanation
An insurance contract requires the insured to have a legitimate financial interest in the subject matter, unlike a wagering contract. This is governed by the principle of Insurable Interest.
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