Asked by Joanna Peralto on May 21, 2024
Verified
Without_____ , there can be no enforceable insurance contract.
A) an insurable interest
B) real property
C) tangible property
D) a broker
Insurable Interest
An interest either in a person’s life or well-being or in property that is sufficiently substantial to justify insuring against injury to or death of the person or damage to the property.
Enforceable
Describing a legal agreement or obligation that can be upheld and compelled by law through legal action.
Insurance Contract
A legally binding agreement between an insurer and the insured, where the insurer agrees to compensate the insured for specific losses in exchange for a premium.
- Grasp the concept of insurable interest and its implications.
Verified Answer
DF
Danna FarahMay 24, 2024
Final Answer :
A
Explanation :
An insurable interest is required for an insurance contract to be legally enforceable. This means the policyholder must stand to suffer a financial loss or certain types of non-financial losses if the insured event occurs. Without an insurable interest, the contract could be considered a wagering contract and thus unenforceable.
Learning Objectives
- Grasp the concept of insurable interest and its implications.