The Concept of an Insurable Interest

question 17

Multiple Choice

The concept of an insurable interest

• A)is aimed at avoiding moral hazards.
• B)prevents an insurance company from selling a policy to anyone other than the owner of a piece of property.
• C)creates an important general exception to the general rule of indemnification.
• D)is relevant only in cases of co-insurance.
• E)was abolished by the Supreme Court of Canada's decision in Kosmopoulos v Constitution Insurance Co.

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Definitions:

Quantity Output

The total amount of goods or services produced by a business, sector, or economy.

Noncooperative Behavior

Actions by firms that ignore the effects of those actions on the profits of other firms.

Marginal Costs

The cost incurred by producing one additional unit of a product.

Industry Output

The total product or service produced by companies within a specific sector or industry.