Question 1

Lalen lives near the river that overflows at least once a year, and causes damages to the houses located near the river. Faruk lives in the city center, far

away from the river in a house which is completely same as Lalen's house. Despite the fact that both houses are completely same in terms of size,

construction materials, quality of construction, Lalen pays higher insurance premium because that is in accordance to the

since

A. principle of homogenous exposure; there is no similar risks;

B. principle of indemnity; he will receive higher amount of compensation;

C. principle of subrogation; does not have insurance from at least two different insurance companies;

D. principle of equitable premiums; he brings higher risk to the pool;