With goods in bailment, when is an insurable interest created?
A) Only when either party has title to the goods
B) When either party has title or a risk of loss, but not under any other circumstances
C) When either party has title, risk of loss, or other economic interest attached to the goods
D) Two days after either party has title to the goods
E) Never. There is no such thing as an insurable interest in a goods-in-bailment contract

Question

Quizplus · Accepted Answer

An insurable interest in goods in bailment is created when either party has title, risk of loss, or any other economic interest in the goods. This ensures that either the bailor or bailee can insure the goods against potential losses, as they have a legitimate financial stake in the goods' safety and condition.

With Goods in Bailment, When Is an Insurable Interest Created