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WAEC Commerce 1991 (August) Question 25

Question 25

Insurance

A house insured against damage by flood was burnt down and the owner had no claims. Which of the following prevented him from making any claim? The principle of

  1. A.indemnity
  2. B.subrogation
  3. C.insurable interest
  4. D.proximate cause
  5. E.utmost good faith
Show the answer and explanation

Answer: D (proximate cause)

Explanation

The loss was caused by fire, not by the flood that was insured, so under proximate cause there is no claim.