Asked by Sharath Rajendran on May 02, 2024
Verified
Which of the following is true of insurable interest?
A) Sellers can retain the insurable interest to goods as long as they have the title to them.
B) Buyers cannot place insurance on goods.
C) Buyers cannot obtain an insurable interest if they might later reject the goods.
D) Buyers can obtain insurable interest on goods that are not mentioned in the contract.
Insurable Interest
A requirement in insurance policies that the policyholder must stand to suffer a financial loss from the insured event, giving them a legitimate interest in seeking coverage.
Buyers
Individuals or entities that purchase goods or services.
Sellers
Individuals or entities that offer goods or services for sale to buyers.
- Investigate the principle of insurable interests concerning merchandise, encompassing the entitlements of purchasers and vendors.
Verified Answer
JN
Jordan NewsomMay 07, 2024
Final Answer :
A
Explanation :
Sellers can retain the insurable interest in goods as long as they have the title to them. This is because they still have a financial interest in the goods until they are transferred to the buyer. Once the title transfers to the buyer, they can obtain an insurable interest in the goods.
Learning Objectives
- Investigate the principle of insurable interests concerning merchandise, encompassing the entitlements of purchasers and vendors.
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