With Respect to Property Insurance,the Insurable Interest Requirement

question 89

Multiple Choice

With respect to property insurance,the insurable interest requirement:

• A)need only be satisfied at the time the policy is issued.
• B)must be satisfied both at the time the policy is issued and at the time of the loss.
• C)will be satisfied only if the insured owns the property in fee simple absolute.
• D)will be satisfied by an insured who possesses a lienhold interest in the property.

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Definitions:

HDC (Holder in Due Course)

A legal term referring to someone who has acquired a negotiable instrument in good faith for value and without notice of any defect.

Defective Instrument

A legal or financial document that contains errors, omissions, or flaws rendering it invalid or ineffective.

Dishonor

To refuse to accept or pay a draft or a promissory note when it is properly presented. An instrument is dishonored when presentment is properly made and acceptance or payment is refused or cannot be obtained within the prescribed time.

Handwriting

The act or practice of writing done with the hand, using instruments such as a pen or pencil, which can be unique to each individual.