With goods in bailment,when is an insurable interest created?
A) Only when either party has title to the goods
B) When either party has title or a risk of loss, but not under any other circumstances
C) When either party has title, risk of loss, or other economic interest attached to the goods
D) Two days after either party has title to the goods
E) Never - there is no such thing as an insurable interest in a goods-in-bailment contract

Question

Quizplus · Accepted Answer

With goods in bailment, an insurable interest is created when either party has title, risk of loss, or some other economic interest attached to the goods (e.g., a creditor who secures a loan by taking the goods as collateral).

With Goods in Bailment,when Is an Insurable Interest Created