Insurable Interest Quiz
5 Questions
7 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

  • Neighbor
  • Visitor
  • Landlord
  • Tenant (correct)
  • 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?

    <p>Wife, son, and daughter</p> Signup and view all the answers

    When does the principle of proximate cause apply in insurance contracts?

    <p>At the end of the contract, looking at the cause of the accident</p> 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.

    Quiz Team

    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.

    More Like This

    Insurance Contracts and Principles
    30 questions
    Nature and Functions of Insurance
    24 questions
    Insurance Contracts Essentials
    40 questions
    Insurance Principles and Contracts
    18 questions
    Use Quizgecko on...
    Browser
    Browser