Ic | 01 Principles Of Insurance Objectives Contents

“Because of ,” Kael explained to Mira, “he must tell us everything. If he hides the stains, the contract is void.” They adjusted the policy to cover only the sound silk. This was the Objective : to promote fairness and transparency.

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.” Ic 01 Principles Of Insurance Objectives Contents

“No,” Mira realized.

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!” “Because of ,” Kael explained to Mira, “he

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.” At the end of the year, Kael retired

“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.