Which of the following principles stipulates that the insured must be in a position to suffer financial loss?

A. indemnity
B. proximate clause
C. insurable interest
D. subrogation

Correct Answer: Option C

C. 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. Insurable interest is an essential requirement for issuing an insurance policy that makes the entity or event legal, valid and protected against intentionally harmful acts. People not subject to financial loss do not have an insurable interest.