Essen Corporation buys from Fallow Farms,Inc.,a rice crop that Fallow plans to plant and harvest during the next growing season.Essen plans to sell the rice to Gourmet Grocery Stores.After the rice is planted,but before it is harvested,an insurable interest in the rice ex?ists in

Question

Quizplus · Accepted Answer

An insurable interest in the rice exists for Essen and Fallow as they both have a financial stake in the success of the crop. Gourmet Grocery does not yet have an insurable interest as they have not taken possession of the rice and are not yet at risk of any potential loss.

Essen Corporation Buys from Fallow Farms,Inc