Which of the Following Is an Inaccurate Statement About the Insurable

question 41

Multiple Choice

Which of the following is an inaccurate statement about the insurable interest requirement?

• A)The beneficiary named in a life insurance policy may recover under the policy if she possessed an insurable interest in the relevant person's life at the time she (the named beneficiary)procured the policy but no longer possessed the insurable interest at the time the relevant person died.
• B)When an equitable interest in a property translates into a legal interest,it is considered to be an insurable interest.
• C)Persons who are business partners are generally held to possess insurable interests in each other's lives.
• D)A policy owner may recover under a property insurance policy if he possessed an insurable interest in the relevant property at the time he procured the policy but no longer possessed the property.

Appreciate the importance of comparing financial terms and recognizing consumer rights in credit and loan situations.

Understand how to calculate debt-to-equity ratio and its implications.

Identify the characteristics and understand the use of stored-value cards.

Recognize appropriate and inappropriate uses of home equity loans.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.