A Pecuniary Interest in Property of Another Is Insufficient to Create

question 37

True/False

A pecuniary interest in property of another is insufficient to create an insurable interest in that property.

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Definitions:

Sale-leaseback Transaction

A financial transaction where one party sells an asset and then leases it back from the buyer, generally to free up capital while retaining the use of the asset.

Capital Lease

A leasing arrangement considered to have the economic characteristics of asset ownership for accounting purposes.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders or used to pay dividends, often reinvested into the business.