Ic 01 Principles Of Insurance Objectives Contents Access

A week later, a rival merchant, Lady Sephra, tried to insure The Golden Breeze as well. Mira was confused. “Why not?” she asked. “More premiums for us?”

“Then she has no ,” Kael said. “If the ship sank, she would gain money, not lose it. That would turn insurance into gambling, not protection.” The Objective here was to prevent moral hazard and ensure insurance is used only for indemnification, not speculation. Ic 01 Principles Of Insurance Objectives Contents

“Because of ,” Kael explained to Mira, “he must tell us everything. If he hides the stains, the contract is void.” They adjusted the policy to cover only the sound silk. This was the Objective : to promote fairness and transparency. A week later, a rival merchant, Lady Sephra,

She was ready. The principles weren’t a puzzle to solve. They were a promise to keep. “More premiums for us

Disaster struck. The Golden Breeze hit a reef and sank. Mr. Elian rushed back, distraught. “My silk was worth 10,000 gold coins! Pay me!”

Mira nodded. “The ship might sink, or pirates might strike.”

Kael shook his head. “Does Lady Sephra own the silk? Does she owe money on the ship?”