Which of the Following Is Correct Concerning When Insurable Interest

question 55

Multiple Choice

Which of the following is correct concerning when insurable interest must exist?

• A) In property and liability insurance, it must exist at the inception of the contract.
• B) It is seldom required in property insurance unless there are liens on the property.
• C) It must exist at the time of death of the insured for the beneficiary to collect in life insurance.
• D) In life insurance, it must exist at the inception of the policy but it is not necessary at the time of the loss.

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Definitions:

Bilateral

Relating to or involving two sides, parties, or countries, often used to describe agreements or communications.

Unilateral

Involving only one side or party, often referring to agreements or actions taken independently by one entity without the need for consent or participation of another.

Contract Law

A branch of legal studies focusing on the creation, interpretation, and enforcement of agreements between parties with mutual obligations.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, or artistic fields.