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:

Product Effectiveness

The degree to which a product successfully meets the intended purpose or satisfies customer needs and expectations.

Business Friendship

The relationship formed between a salesperson and client that revolves around business-related issues.

Personal Friendship

A relationship between individuals based on mutual affection, trust, and support, not determined by professional or business interactions.

Own Needs

The personal requirements or desires that drive an individual's purchasing decisions or actions.