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.

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Definitions:

ROA

Return on Assets; a profitability ratio that measures how efficiently a company can manage its assets to produce profits during a period.

Total Equity

The residual interest in the assets of an entity after deducting liabilities; essentially, it represents the ownership value in the firm.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Total Debt Ratio

A financial metric that compares the total amount of a company's debt to its total assets, indicating the extent to which a company's operations are financed by debt.