Insurable interest
A legally recognised interest in the subject-matter is required or the contract may fail. Timing rules can differ between life and property covers—verify the official text.
Utmost good faith and material facts
Both sides should disclose material facts that would influence underwriting. Materiality is judged by the prudent insurer standard; non-disclosure or misrepresentation can void cover or claims.
Indemnity, subrogation and contribution
Indemnity prevents profit from loss; subrogation lets insurers pursue third parties after payment; contribution apportions dual insurance. Life and some fixed benefits may sit outside strict indemnity—a classic exam boundary.
Proximate cause
Proximate cause looks for the dominant effective cause, not merely the last event in time. Map the chain, then test against perils and exclusions.
Study tips
- Prepare one “applies” and one “does not apply” example per principle