________ is a requirement that a person who purchases insurance has a personal stake in the insured item or person.

Question

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Insurable interest is the requirement that a person who purchases insurance has a personal stake in the insured item or person. This means that the person must have a financial interest in the subject matter of the insurance policy such that they will suffer a loss if the subject matter is damaged or destroyed. Without insurable interest, there is a risk of moral hazard, where a person may intentionally cause damage to the insured item in order to collect on the insurance payment.

________ Is a Requirement That a Person Who Purchases Insurance