A Person Has an Insurable Interest in Property If Destruction

question 38

True/False

A person has an insurable interest in property if destruction of that property would cause a monetary or pecuniary loss to that person.

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Definitions:

Net Income

The net income of a business following the subtraction of all costs and taxes from its gross earnings.

Income Distribution

The allocation of a company's net income among shareholders in the form of dividends and retained earnings within the company.

Capital Balance

Represents the amount of capital contributed by investors or owners, plus retained earnings minus any distributions or withdrawals.

Interest

The cost paid for borrowing money, typically expressed as a percentage rate over the period of borrowing.