Which of the following is not the principle of insurance:

A. Utmost Good Faith

B. Principle of Contribution

C. Maximization of Profit

D. Causa Proxima

Answer: Option C

Solution(By Examveda Team)

Maximization of Profit is not the principle of insurance. There are seven basic principles that create an insurance contract between the insured and the insurer: Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution and Loss Minimization.