12 Questions
Who can possess insurable interest in property through their security interests?
Mortgageholders
What is an example of an insurable interest based on a legal relationship with the subject of insurance?
Ownership interest in property
Which of the following is a component of liability coverage in property insurance policies?
Protection in case of lawsuits
Who does liability coverage in property insurance policies protect against accidental property damage caused by?
Pets
What is the term for holding a person liable for damages caused by their actions or products, even if they were not at fault?
Strict liability
Which relationship is necessary for the principle of vicarious liability to apply?
Principal-agent relationship
What is another term for absolute liability?
Strict liability
Which type of liability holds the defendant responsible for the consequences flowing from an activity even in the absence of fault or criminal intent?
Absolute liability
Under what circumstances may a person be held liable under strict liability?
If the defendant was not involved in ultra hazardous activities
What does the principle of vicarious liability mean?
Let the principal be liable for an employee's negligent actions
What is the rule of absolute liability?
Liability without exceptions
What is the main characteristic of absolute liability?
Holds defendant responsible for any losses
Test your knowledge about insurable interest in property insurance with this quiz. Explore the concept of insurable interest and its significance in property claims.
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