Which of the Following Statements Is True About an Insurable

question 27

Multiple Choice

Which of the following statements is true about an insurable interest?

• A)It is not relevant when an insurable interest is created.
• B)Both the buyer and seller can insure themselves for potential damage to goods
• C)Only the seller can insure itself for potential damage to goods.
• D)An insurable interest is the right to insure goods in one's possession.
• E)Only the buyer can insure itself for potential damage to goods.

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Definitions:

Geographical Regions

Refers to specific areas or divisions of the world categorized by physical form, climate, political division, or economic condition.

Aggregation

The process of combining multiple pieces of data, inventory, or information into a single group or total, often for analysis or planning purposes.

Safety Inventory

Additional stock kept in reserve to protect against uncertainties in demand or supply, ensuring product availability.

Safety Inventory

Extra inventory held to guard against uncertainty in the demand or supply chain, ensuring that shortages are minimized.