Ic 01 Principles Of Insurance Objectives Contents Apr 2026

“Then she has no ,” Kael said. “If the ship sank, she would gain money, not lose it. That would turn insurance into gambling, not protection.” The Objective here was to prevent moral hazard and ensure insurance is used only for indemnification, not speculation.

“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.

Disaster struck. The Golden Breeze hit a reef and sank. Mr. Elian rushed back, distraught. “My silk was worth 10,000 gold coins! Pay me!” Ic 01 Principles Of Insurance Objectives Contents

A month later, investigators found that a reckless harbor pilot had rammed The Golden Breeze . Kael smiled grimly. “Now for ,” he told Mira. “We pay Mr. Elian today. But tomorrow, we step into his shoes and sue that harbor pilot for the 10,000 gold.”

Kael shook his head. “Does Lady Sephra own the silk? Does she owe money on the ship?” “Then she has no ,” Kael said

“Good,” Kael said. Then he asked Mr. Elian, “Is the silk already damp? Have the rats chewed it?”

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.” “Exactly

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

She was ready. The principles weren’t a puzzle to solve. They were a promise to keep.