Ic 01 Principles Of Insurance Objectives Contents Official

“No,” Mira realized.

A week later, a rival merchant, Lady Sephra, tried to insure The Golden Breeze as well. Mira was confused. “Why not?” she asked. “More premiums for us?” Ic 01 Principles Of Insurance Objectives Contents

“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. “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!” ” Mira realized. A week later

“Zero,” Mira whispered.