Concept:Insurable interest means the insured must suffer a genuine financial loss if the insured risk happens.
Explanation:The principle prevents a person from taking out insurance on something in which he has no financial stake.
If the event occurs and he loses nothing financially, then he has no insurable interest.
For example, a person can insure his own house because its damage would cause him financial loss.
He cannot insure a stranger's house because he would not lose money if it was destroyed.
Indemnity limits compensation to the actual loss, while subrogation and proximate cause deal with other aspects of claims.
Only insurable interest directly deals with what the person stands to lose.
Answer:B. insurable interest