The principle of insurance that demands that the insured must stand to a loss in the event of a loss before taking a policy is?

A. consideration
B. insurable interest
C. proximate cause
D. subrogation

Correct Answer: Option B

B. insurable interest

Explanation

Insurable interest is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. it is the main reason an insurance contract is entered into