Question:medium
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?
Show Hint
Insurable Interest is what legally differentiates insurance from gambling.
Updated On: Feb 18, 2026
- Causa Proxima
- Indemnity
- Insurable Interest
- Subrogation
Show Solution
The Correct Option is C
Solution and Explanation
Unlike wagering contracts, insurance contracts mandate that the insured possess a valid financial stake in the insured item. This requirement is based on the principle of Insurable Interest.
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