When Does a Seller's Insurable Interest Terminate

question 7

Multiple Choice

When does a seller's insurable interest terminate?

• A) when title passes to the buyer
• B) when risk of loss passes to the buyer
• C) when the seller identifies the goods to be sent to the buyer
• D) The seller never has an insurable interest, only the buyer.
• E) The seller always has an insurable interest, but the buyer never has an insurable interest.

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Definitions:

UCC

Stands for Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Statute of Frauds

A rule of law mandating that specific contract categories must be documented and signed by the involved parties to have legal validity.

Writing Requirement

The legal principle that certain contracts or agreements must be documented in written form to be legally binding.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by all parties involved in order to be enforceable.