Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
In insurance contracts, when is insurable interest required?
In insurance contracts, when is insurable interest required?
- At the beginning of some contracts and at the end of others (correct)
- Only at the beginning of the contract
- Only at the end of the contract
- At the end of some contracts and at the beginning of others
Who can insure a part of a home according to the principle of insurable interest?
Who can insure a part of a home according to the principle of insurable interest?
- Neighbor
- Visitor
- Landlord
- Tenant (correct)
In insurance contracts, on whom can a creditor have insurable interest?
In insurance contracts, on whom can a creditor have insurable interest?
- Insurance company
- Debtor by loan value (correct)
- Government institution
- Third-party friend
Who can a father insure based on insurable interest?
Who can a father insure based on insurable interest?
Signup and view all the answers
When does the principle of proximate cause apply in insurance contracts?
When does the principle of proximate cause apply in insurance contracts?
Signup and view all the answers
Study Notes
Insurable Interest
- Insurable interest is required when a party enters into an insurance contract to protect their financial interest in the subject matter of the policy.
- Only those with a financial interest or relationship with the subject matter can purchase insurance.
Who Can Insure
- According to the principle of insurable interest, a co-owner or a part-owner can insure a part of a home.
- A creditor can have insurable interest in a debtor's life or property.
- A father can insure his child based on insurable interest, as he has a financial interest in the child's well-being.
Proximate Cause
- The principle of proximate cause applies in insurance contracts when determining the cause of a loss or damage.
- It is used to establish the direct cause of a loss or damage, as opposed to an indirect or remote cause.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on insurable interest, which is the relationship between the insured and the subject of insurance in insurance contracts. Explore examples and principles related to insurable interest in various insurance scenarios.
