Dave and Meagan Philips borrowed $150,000 from Fifth National Bank to help fund the purchase of a new home.The home serves as collateral for the loan.Fifth National has an insurable interest in the home based on

Question

Quizplus · Accepted Answer

Fifth National Bank is a secured creditor, meaning they have a legal claim to the collateral (the home) if Dave and Meagan Phillips default on the loan. As a result, they have an insurable interest in the home as a means of protecting their investment.

Dave and Meagan Philips Borrowed $150,000 from Fifth National Bank