Those who have an insurable interest in property must have that interest at the time the loss occurs.

Question

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This principle is a fundamental requirement of insurance contracts. An insurable interest must exist at the time of loss to prevent individuals from profiting from a loss that does not affect them directly. This is to prevent fraudulent claims and ensure that insurance policies fulfill their purpose of providing financial protection for those who suffer losses.

Those Who Have an Insurable Interest in Property Must Have