A drunk driver ran a red light and smashed into Karins car. The cost to repair the car is USD 2000. Karin has motor insurance on her car with USD 500 of deductible. The drunk driver also has a motor insurance in place. If Karin makes a claim against her own motor insurance:

1. Explain the relevance of the principle of insurable interest in this case.

2. Explain the relevance of the principle of subrogation in this case.

3. Explain the relevance of the principle of indemnity in this case.

4. Explain the relevance of the principle of contribution in this case.