Question

Which of the following principles distinguishes an insurance contract from a wagering contract?

• A. Causa Proxima
• B. Indemnity
• C. Insurable Interest
• D. Subrogation

Hint:

Insurable Interest is what legally differentiates insurance from gambling.

Answer 1

The Correct Option is C

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.