The Insurable Interest Requirement with Regard to Property Insurance

question 61

Multiple Choice

The insurable interest requirement with regard to property insurance:

• A)may be waived by a writing signed by the insured and insurer.
• B)may be satisfied by a person other than the legal owner of the property.
• C)must be satisfied at the time the policy is issued.
• D)must be satisfied by the insured's legal title to the property at the time of loss.

---

Definitions:

Subjective Test

An assessment criteria based on personal opinions, feelings, and perspectives, rather than objective, measurable standards.

Material Breach

A significant failure to perform one's contractual obligations, which justifies the other party's termination of the contract.

Basic Principles

Fundamental rules or doctrines that form the foundation for a system of belief, behavior, or reasoning.

Specified Design

A detailed description or plan showing how something is to be made or built.