The existence of an insurable interest is a primary concern when determining liability under an insurance policy.

Question

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Insurable interest is a fundamental principle of insurance that requires the insured to have a financial stake in the property or life insured. Without an insurable interest, the insurance contract is considered invalid and the insurer is not liable to pay any claims. Therefore, the existence of an insurable interest is crucial in determining liability under an insurance policy.

The Existence of an Insurable Interest Is a Primary Concern