________ is a requirement that a person who purchases insurance have a personal stake in the insured item or person.

Question

Quizplus · Accepted Answer

Insurable interest is a requirement in insurance contracts that the policyholder must have a personal stake in the insured item or person. This means that the policyholder must stand to lose financially if the insured item or person is damaged or lost. This requirement is present to prevent individuals from taking out insurance policies on items or people in which they have no financial interest, which could lead to fraudulent claims being made.

________ Is a Requirement That a Person Who Purchases Insurance