Which of the Following Is True of Insurable Interest

question 39

Multiple Choice

Which of the following is true of insurable interest?

• A)Sellers can retain the insurable interest to goods as long as they have the title to them.
• B)Buyers cannot place insurance on goods.
• C)Buyers cannot obtain an insurable interest if they might later reject the goods.
• D)Buyers can obtain insurable interest on goods that are not mentioned in the contract.

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Definitions:

Seasoned Stock Offering

A public offering of securities by a company that has previously issued securities to the public.

Market Value

The going rate at which the market facilitates the purchase or sale of assets or services.

Firm Commitment Underwriting

A method of securities underwriting where the underwriter agrees to buy the entire issue at a set price, assuming full financial risk by reselling the securities to the public.

Guaranteed Underwriting

A promise by an underwriter to purchase all unsold shares in an offering, ensuring that the issuing company raises the full capital.