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:

Credit Side

The right side of an account in double-entry bookkeeping, typically used to record increases in liabilities, revenue, or equity.

Basic Accounting Equation

The foundational accounting principle stating that Assets = Liabilities + Equity.

General Journal

An initial record where all transactions are first entered, providing a chronological order of all financial transactions made by a business.

Chronological Record

A record of events in the order they occurred over time.