An Insurable Interest in Property Need Not Exist When a Policy

question 30

True/False

An insurable interest in property need not exist when a policy insuring against its damage or loss is purchased.

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Definitions:

Cumulative Voting

A system of voting for directors of a corporation in which shareholders can concentrate their votes on one candidate, rather than having to distribute them equally among candidates.

Majority Shareholder

An individual or entity that owns more than half of a company's outstanding shares, giving them controlling interest.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Voting Trust

A type of shareholder voting arrangement by which shareholders transfer their voting rights to a voting trustee.