An Insurable Interest in Property Must Exist

question 66

Multiple Choice

An insurable interest in property must exist:

• A) at the time the insurance policy is obtained.
• B) at the time the loss occurs.
• C) from the time the policy is obtained to the time the loss occurs without interruption.
• D) for only one person at a time in a particular property.

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Definitions:

Information Problems

Challenges encountered due to the lack of complete or accurate information, leading to suboptimal decisions and market failures.

Incentive to Acquire

Motivation or reason for individuals or entities to obtain or gain possession of assets.

Nonexcludable

Characterizes a good or service for which it is not possible to prevent individuals who do not pay from consuming it, leading to potential free-rider problems.

Nonpaying Customers

Individuals who receive a good or service without providing monetary compensation.