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Principles of life insurance principles of insurance 48 would as a proximity cause, involve the assured in the loss or diminution of any right recognised by law or in any legal liability there is an insurable interest in the happening of that event to the extent of the possible loss or liability.” Principal life insurance company attn: The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized. Death may strike anyone prematurely.