Asked by Deija Williams on Jun 29, 2024
Verified
What type of interest occurs when there is a right to insure goods against any risk exposure such as damage or destruction?
A) An insurable interest
B) A subrogation interest
C) A non-pecuniary interest
D) An accord and satisfaction
E) An abeyance
Insurable Interest
A stake in the preservation of a person or property that is sufficiently substantial to justify purchasing insurance.
Risk Exposure
The degree of vulnerability to potential financial loss in business operations or investments.
Damage or Destruction
The physical harm or ruin caused to property, environments, or items, which can impact their value, function, or usability.
- Understand the principle of insurable interest and its significance in sales agreements.
Verified Answer
JC
Jordan CasonJul 02, 2024
Final Answer :
A
Explanation :
An insurable interest occurs when there is a right to insure the goods against any risk exposure such as damage or destruction.
Learning Objectives
- Understand the principle of insurable interest and its significance in sales agreements.