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Principals of Insurance (Banking & Insurance Management) Question Paper, MBA - Business PDF Download

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FAQs on Principals of Insurance (Banking & Insurance Management) Question Paper, MBA - Business

1. What are the principles of insurance in banking and insurance management?
Ans. The principles of insurance in banking and insurance management are a set of guidelines that govern the functioning of insurance companies. These principles include principles of utmost good faith, insurable interest, indemnity, contribution, and subrogation.
2. What is the principle of utmost good faith in insurance?
Ans. The principle of utmost good faith in insurance refers to the obligation of both the insurer and the insured to disclose all relevant information that may affect the insurance contract. This principle ensures transparency and honesty in the insurance transaction.
3. What is the principle of insurable interest in insurance?
Ans. The principle of insurable interest in insurance states that the insured must have a financial or legal interest in the subject matter of the insurance. This principle prevents individuals from obtaining insurance for events in which they do not have a legitimate interest.
4. What is the principle of indemnity in insurance?
Ans. The principle of indemnity in insurance refers to the concept that insurance is meant to compensate the insured for the actual loss suffered, up to the amount of the insured value. It ensures that the insured is not allowed to profit from the insurance contract but only to recover the loss.
5. What is the principle of subrogation in insurance?
Ans. The principle of subrogation in insurance allows the insurer, after paying the insured for a loss, to assume the insured's rights and pursue legal action against the party responsible for the loss. This principle helps to prevent the insured from being compensated twice for the same loss and allows the insurer to recover part of the amount paid.
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