principles of insurance

7 principles of insurance

7 principles of insurance The seven principles of insurance form the foundation of fair and responsible insurance practices. They ensure a well-functioning system that offers security and stability to policyholders while maintaining the financial viability of insurance companies. Let’s delve into each principle: 1. Utmost Good Faith: Both the policyholder and the insurance company must act honestly and openly throughout the entire process, from disclosing all relevant information during the application stage to making claims. This means no misrepresentation or…