Which of the following is true about insurable interest regarding property insurance?

Question

Quizplus · Accepted Answer

Insurable interest in the property must exist at the time there is a loss. This means that at the time of the claim, the individual or entity making the claim must have some financial or other interest in the property that is being insured. The interest in the property must be present at the time the loss occurs, not just at the time the policy is issued. Thus, option D is incorrect as it states that the insurable interest must exist at the time of the policy issuance. Option A is also incorrect as multiple parties can have an insurable interest in the same item at the same time, such as a landlord and a tenant both having an insurable interest in a rented property. Option B is incorrect because an insurable interest in property is not simply about establishing a value, but rather having a financial or other interest in the property.

Which of the Following Is True About Insurable Interest Regarding