Principles Of Insurance Objectives Contents: Ic 01

Kael turned to Mira. “First, identify the (the Objective of insurance is to protect against pure risk – the chance of loss, not gain).”

“Exactly. The principle of ,” Kael said. “Insurance should put you back in the exact financial position you were in before the loss – no better, no worse.” He paid Mr. Elian the actual value of the lost silk (minus the stained bolts they excluded). The Objective : to prevent the insured from profiting from a tragedy.

“Zero,” Mira whispered.

“So the responsible party pays, not us?” Mira asked.

Kael shook his head. “Does Lady Sephra own the silk? Does she owe money on the ship?” Ic 01 Principles Of Insurance Objectives Contents

Mira nodded. “The ship might sink, or pirates might strike.”

“Exactly. And if another insurer had covered part of the ship, we’d use – splitting the loss fairly between us.” The Objectives : to hold the guilty party accountable and prevent the insured from collecting multiple payments. Kael turned to Mira

Mira calculated the claim. But Kael stopped her. “What is the of the silk at the bottom of the sea?”

At the end of the year, Kael retired. He handed Mira the office key. “You’ve learned the ,” he said. “Now remember the ultimate Objectives of the IC-01 principles.” “Insurance should put you back in the exact