The Concept of an Insurable Interest

question 4

Multiple Choice

The concept of an insurable interest

• A) is relevant only in cases of co- insurance.
• B) is aimed at avoiding moral hazards.
• C) prevents an insurance company from selling a policy to anyone other than the owner of a piece of property.
• D) creates an important general exception to the general rule of indemnification.
• E) was abolished by the Supreme Court of Canada's decision in Kosmopoulos v Constitution Insurance Co.

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Definitions:

Business Associations

Represent the interests of organisations in an industry or region.

Occupational Health

A field of healthcare that focuses on the physical and mental well-being of employees in the workplace by preventing and addressing injuries and illnesses that may arise from work activities.

Profit Margins

The percentage of revenue remaining after deducting the cost of goods sold, symbolizing the financial health and profitability of a business.

Welfare Facilities

Denotes amenities and services provided by employers to improve the well-being and working conditions of employees.