words, the insured must stand to suffer a financial loss if the insured event occurs. For instance, a person can only insure their property or their own life, not someone else's. The fourth tenet is the proximate cause. The proximate cause determines the relationship between the insured event and the resulting loss. It seeks to establish a direct link between the insured event and the financial consequences suffered. Insurance coverage is typically triggered by the proximate cause of the loss rather than any remote or indirect causes. Subrogation is the fifth principle of insurance. Subrogation allows insurers to assume the rights of the insured after settling a claim. In other words, the insurer can legally pursue recovery from a third party responsible for the loss or damages. This tenet ensures that the insurer can recoup its expenses and prevent unjust enrichment. The sixth principle is indemnity. Indemnity refers to the principle that insurance aims to restore the insured to the same financial position they were in before the loss occurred. Insurance policies are designed to compensate for the actual monetary value of the loss or damages suffered, without providing a source of profit for the insured. Contribution is the seventh tenet of insurance. Contribution involves multiple insurance policies covering the same risk. If a person holds multiple policies that cover the same loss, they cannot claim more than the actual loss from all policies combined. The principle of contribution prevents individuals from profiting or receiving excessive compensation by making multiple claims for the same loss. The eighth tenet is loss minimalization. Loss minimalization emphasizes the insured's obligation to take reasonable measures to prevent or minimize the extent of the loss or damage. Insured individuals are expected to act responsibly and mitigate the risks to the best of their abilities. Failure to do so may affect the coverage provided by the insurance policy. The ninth principle is defined as economic loss. Defined economic loss refers to the requirement that the loss suffered must be quantifiable in monetary terms. Insurance covers financial losses and damages that can be assessed and measured objectively. Non-economic losses, such as emotional distress or pain and suffering, are generally not covered by insurance policies. Finally, the tenth tenet is the regulation of insurance. It is primarily the responsibility of individual states rather than the federal government in many countries, including the United States. State insurance departments oversee the licensing of insurers, review insurance policies for compliance, and protect the interests of policyholders. This principle ensures uniformity, consumer protection, and fair practices within the insurance industry. Among these principles, fortuity, defined economic loss, and state regulation of insurance play pivotal roles. Emphasizing these aspects is of great importance in maintaining the integrity of insurance contracts and safeguarding the interests of both insurers and policyholders. Fortuity stands as a fundamental principle in insurance, signifying that insurance coverage is designed to protect against unexpected and unintentional events. It ensures that insurance contracts are based on the concept of risk and uncertainty, rather than predictable occurrences or
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