Asked by Chris Turner on Jun 23, 2024
Verified
An individual has an insurable interest in property whenever that person derives a(n) ________
A) above fair market value quote for the property.
B) ownership interest separate from a lending agency.
C) a clear title to the property.
D) fair market selling price.
E) financial benefit from its continued use.
Insurable Interest
A principle that requires an individual to have a stake in the safety or preservation of the insured object against loss or damage.
Financial Benefit
An economic advantage or gain received, such as income, dividends, or appreciation in asset value.
Fair Market Value
Fair market value is the price at which a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts, would engage in a transaction.
- Understand the principle of insurable interest and its necessity in filing claims as a beneficiary.
Verified Answer
WJ
William JessupJun 28, 2024
Final Answer :
E
Explanation :
An individual has an insurable interest in property when they stand to gain a financial benefit from its continued use, preservation, or existence. This means they would suffer a financial loss if the property were damaged or destroyed, thus giving them a legitimate interest in insuring the property.
Learning Objectives
- Understand the principle of insurable interest and its necessity in filing claims as a beneficiary.