Explain any five principles of insurance
Answer:
-Principle of insurable interest: One can only insure a property if he standards to incur a financial loss in the event of the risk taking place
-Indemnity principle : The insured can only restore the insured to the financial position he was before the risk occurred
-Utmost good faith(Uberrimae fidei): The insured is expected to disclose all the material facts concerning the property or life to be insured before taking the insurance cover
-Subrogation:Whatever remains of the insured property after the insured has been compensated according to the terms of
the policy it becomes the property of the insurance company/insurer
-Proximate cause:For the insured to be compensated there must be a very close relationship between the loss covered and risk insured
-Indemnity principle : The insured can only restore the insured to the financial position he was before the risk occurred
-Utmost good faith(Uberrimae fidei): The insured is expected to disclose all the material facts concerning the property or life to be insured before taking the insurance cover
-Subrogation:Whatever remains of the insured property after the insured has been compensated according to the terms of
the policy it becomes the property of the insurance company/insurer
-Proximate cause:For the insured to be compensated there must be a very close relationship between the loss covered and risk insured
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Explain the following as used in satisfaction of human wants.
-Utility
-Producer goods
-Scarcity and choice
-Scale of preference 
