which of the following principls stipulates that the insured must be in a position to suffer financial loss?
Answer Details
The principle that stipulates that the insured must be in a position to suffer financial loss is "insurable interest." This principle states that in order for insurance to be valid, the insured must have a financial interest in the item or property being insured. This means that the insured must stand to suffer a financial loss if the item or property is damaged or destroyed. The principle of insurable interest helps prevent insurance from being used as a means of gambling or profiting from misfortune. It also helps ensure that insurance is used for its intended purpose of protecting against unexpected financial losses.