An Absolute Defense Against Payment Exists If the Insurer Can

question 6

True/False

An absolute defense against payment exists if the insurer can show that the insured lacked an insurable interest.

---

Definitions:

Principal

The initial amount of money borrowed or invested, excluding any interest or dividends.

Compounded Monthly

Interest on an investment or loan calculated and added to the principal amount on a monthly basis.

Future Payments

Payments that are scheduled to occur at future dates as part of a financial agreement or plan.

Debtor

A person or entity that owes money to another, typically as the result of a loan or other financial agreement.