Question

    What is the principle of insurable interest in insurance? 

    A The insured must have a financial or other interest in the subject matter of the insurance policy Correct Answer Incorrect Answer
    B The insurer must have a financial interest in the subject matter of the insurance policy Correct Answer Incorrect Answer
    C The insured must have no interest in the subject matter of the insurance policy Correct Answer Incorrect Answer
    D The insurer must have no interest in the subject matter of the insurance policy Correct Answer Incorrect Answer

    Solution

    The principle of insurable interest requires that the insured must have a financial or other interest in the subject matter of the insurance policy, which means they will suffer a financial loss if the subject matter is damaged or destroyed.

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