Ic 01 Principles Of Insurance Objectives Contents May 2026

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!”

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. Ic 01 Principles Of Insurance Objectives Contents

“Good,” Kael said. Then he asked Mr. Elian, “Is the silk already damp? Have the rats chewed it?” Disaster struck

Kael shook his head. “Does Lady Sephra own the silk? Does she owe money on the ship?” Elian rushed back, distraught

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?”

“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.

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.”