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.

Mira nodded. “The ship might sink, or pirates might strike.” Ic 01 Principles Of Insurance Objectives Contents

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

That very week, a silk merchant, Mr. Elian, rushed in. His ship, The Golden Breeze , was due to carry 1,000 bolts of silk across the Serpent Sea. “Insure it!” he begged. Mira nodded

“Proximate Cause,” Kael declared. “Not the nearest in time, but the nearest in efficiency .” They learned that the fire caused a panic, a horse kicked the rowboat, and it shattered before the flames reached it. The was the panic (uninsured), not the fire (insured). The Objective : to find the true, dominant cause of the loss, not just the last event.