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O-LevelCommerceInsurance7100/12 · May/June 2016 · Q311 Mark

An insured car is badly damaged in a road accident. After full compensation is made, the insurance company sells the car and keeps the money. Which insurance principle explains this action?

Acontribution
Binsurable interest
Cproximate cause
Dsubrogation

✓ Correct answer

D: subrogation

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About this question

Topic
Insurance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source
O-Level Commerce, May/June 2016 Paper 1 Variant 2, question 31.

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