The Particulars of the Insurable Interest in a Contract of Insurance

question 44

Essay

The particulars of the insurable interest in a contract of insurance are very important to the insurer in determining how to evaluate the risk of an application. How does an insurer assess the risk it is undertaking and what are the consequences of an incorrect assessment however caused?

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Definitions:

Individualistic Culture

A culture that emphasizes the rights and freedoms of the individual over the collective.

Collectivistic Culture

A culture that prioritizes the group over individual goals and values interdependence and conformity.

Forms of Prejudice

Variations of prejudgment or unfounded negative beliefs and attitudes toward different groups of people.

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.