Observation

Most of the candidates performed poorly in this question. Some of the answers expected from the candidates are:

Subrogation -  This is a principle which allows an insurance company to take over the rights of an insured once he is compensated.

Proximate cause - This principle states that there must be a close connection between the loss actually suffered and the risk insured against for the insured to be compensated.

Barratry - The term includes every wrongful act willfully committed by the master or crew of a ship to the prejudice of the owner or charterer.