If a Person Has an Insurable Interest in Property,which of the Following

question 33

Multiple Choice

If a person has an insurable interest in property,which of the following is required for the person to collect the beneficiary payment when there is a loss?

• A)The person must make a claim to the insurer within 14 days of the loss.
• B)The person must make a claim to the insurer within 30 days of the loss.
• C)The person must have had an interest in the property at the time of the loss.
• D)The person must have had an interest in the property at anytime during coverage.
• E)The person must have had an interest in the property before the loss.

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Definitions:

Face Value

The nominal value printed on a bill, bond, ticket, or other document, representing its value at issuance and/or redemption.

Effective-Interest Method

A method used in finance to systematically allocate the interest expense or income over the life of a financial asset or liability.

Interest Period

The span of time over which interest is calculated and charged on loans or investments.

Discount Amortization

The gradual write-off of the discount amount on bonds payable over the life of the bond to accurately reflect interest expense over time.