Which of the following is a key principle of insurance?

Insurable interest is a fundamental principle of insurance that ensures the policyholder will only insure something they have a stake in, whether it's a financial interest or a legal obligation. This principle is crucial because it prevents moral hazards and fraud, ensuring that individuals do not take out insurance policies on items or lives they have no legitimate interest in. It reinforces the idea that insurance is meant to provide protection for losses that affect one's financial interests, promoting integrity within the insurance system.

In contrast, guaranteed profit is not a principle of insurance; insurance operates on the premise of risk sharing, not profit guarantees. Implied warranty refers to representations that are assumed to be true unless proven otherwise, which, while relevant in some contexts, is not a foundational principle of insurance. Non-disclosure involves failing to provide relevant information and undermines the validity of an insurance contract, but it does not represent a guiding principle like insurable interest does.