Only someone with an insurable interest can enter into an insurance contract.

Name: Only someone with an insurable interest can enter into an insurance contract.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Insurable interest means that the policyholder must suffer a financial loss if the insured event occurs, such as damage to property, illness, or death. Without an insurable interest, the insurance contract would be considered a form of gambling, which is illegal.

Only Someone with an Insurable Interest Can Enter into an Insurance