The rationale that allowing people to insure property they have no real interest in may lead to the intentional destruction of the property applies to which of the following?

Question

Quizplus · Accepted Answer

The insurable interest rule states that someone can only purchase insurance on property they have a legitimate interest in, such as their own property. Allowing people to insure property they have no real interest in may lead to the intentional destruction of the property, as they would stand to gain financially from its destruction. This is why the insurable interest rule is important in preventing insurance fraud. The other rules listed (life insurance rule, indemnity rule, and coinsurance rule) do not directly relate to this issue.

The Rationale That Allowing People to Insure Property They Have