Which of the Following Is Correct with Respect to the Meaning

question 99

Multiple Choice

Which of the following is correct with respect to the meaning of an insurable interest?

• A) An insurable interest means that the person causing the loss is required to show enough interest in what he is doing to be careful.
• B) The insurance company must have received a premium before it can be said to have an interest in the agreement and be bound to pay when a claim is made.
• C) The beneficiary or person receiving payment must have an ownership interest in the thing being insured.
• D) The person taking out the insurance contract must be in a position that he will suffer a loss if the insured-against event occurs.
• E) This term describes when a person has taken out insurance on something.