An insurable interest is
A)an interest in goods permitting a party to insure against their damage.
B)an interest in ensuring that goods are of a certain quality.
C)interest that can accrue from investing in insurance of certain goods.
D)none of the choices.

Question

Quizplus · Accepted Answer

An insurable interest is a requirement in insurance policies that the policyholder must have a stake in the insured item that would cause them to suffer a financial or other types of loss if the item were damaged or lost. This concept prevents people from insuring something they have no financial stake in, thereby reducing the risk of insurance fraud. Choice A accurately describes this concept by stating it is an interest in goods that allows a party to insure against their damage.

An Insurable Interest Is