Under Which of the Following Circumstances Might a Gallon of Water

question 216

Multiple Choice

Under which of the following circumstances might a gallon of water be more valuable than a flawless one carat diamond? ​

• A) ​At a diamond shop next door to a clean public drinking fountain.
• B) ​At a diamond shop next door to a typical grocery store selling bottled water.
• C) ​In any U.S. city with safe, clean drinking water.
• D) ​In a life raft with 8 passengers who have been adrift on a remote part of the Pacific Ocean for a week with few prospects of an immediate rescue.

---

Definitions:

Insurable Interest

A requirement that a person seeking to take out an insurance policy on something or someone must have a vested interest that would result in financial loss if the insured event occurs.

Property Insurance Policy

A contract that provides financial reimbursement to the owner or renter of a structure and its contents in case of damage or theft.

Time Of Loss

Refers to the specific date and time an event occurred which results in an insurance claim.

Insurable Interest

The stake or financial interest that an individual or entity has in the subject matter of an insurance policy, which must exist at the time of loss for the insurance claim to be valid.