An Insurable Interest in Property Must Exist at the Time

question 39

True/False

An insurable interest in property must exist at the time that the loss is suffered, while an insurable interest in life must exist at the time that the policy is issued.

---

Definitions:

Substantial Down Payment

A large initial payment made when purchasing an item or property, reducing the amount of the loan or mortgage required.

Risk of Obsolescence

The risk that a product, service, or technology will become outdated or no longer useful, often due to advancements in technology.

Debt to Stockholders' Equity Ratio

A financial ratio that measures the proportion of a company's total debt to its shareholders' equity, indicating the financial leverage of the company.

Current Ratio

The Current Ratio is a measure of liquidity that assesses a company's capacity to cover short-term liabilities or debts due within the next year.