Which of the following is not the principle of insurance:

The correct answer is C. Maximization of Profit.

The principles of insurance are:

• Utmost good faith: This means that both the insurer and the insured must be honest with each other in all dealings related to the insurance policy.
• Indemnity: This means that the insurer will only pay the insured for the actual losses that they have suffered, up to the amount of the policy limit.
• Causa proxima: This means that the insurer is only liable for losses that are caused by the event that is insured against.
• Subrogation: This means that if the insured is able to recover damages from a third party for a loss that is covered by insurance, the insurer will be subrogated to the insured’s rights against the third party.
• Contribution: This means that if multiple insurers are liable for the same loss, they will share the liability in proportion to their respective policy limits.

Maximization of profit is not a principle of insurance. The purpose of insurance is to protect the insured from financial loss, not to make a profit for the insurer.