1. Principle of insurable interest: Insurable interest refers to the legally recognized interest of the insured on the subject matter insured. The principle of insurable interest refers to the stipulation that the insured and the insured must have insurable interest in the subject matter of insurance when signing or performing an insurance contract. Second, the principle of utmost good faith: utmost good faith means that the parties sincerely inform the other party of all important facts about insurance fully and accurately, and there is no hypocrisy, deception or concealment. The principle of utmost good faith means that the parties to an insurance contract should provide the other party with all substantive and important facts that can affect the other party's decision to conclude and perform the contract during the conclusion and validity of the contract, and at the same time absolutely abide by the agreements and commitments at the place where the contract is concluded. Three. Principle of proximate cause: proximate cause refers to the most direct, effective and decisive cause of loss between risk and loss, not the closest cause in time or space. The principle of proximate cause means that in the relationship between the risk and loss of the subject matter insured, if proximate cause belongs to the insurance risk, the insurer shall be liable for compensation; If the proximate cause is excluded risk or uninsured risk, the insurer shall not be liable for compensation. Four. Principle of loss compensation: The principle of loss compensation refers to that after the insurance contract comes into effect, when the subject matter insured suffers losses within the scope of insurance liability, the insured can recover to the original economic state before the disaster through insurance compensation, but can't get additional income due to the losses.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.