Author Question: When must an insurable interest legally exist in property insurance for an insured to receive ... (Read 85 times)

student77 · **on:** Jul 11, 2018

When must an insurable interest legally exist in property insurance for an insured to receive payment for a loss from the insurer?

A) only at the time of the loss
B) only at the inception of the policy
C) only at the time the loss settlement takes place
D) both at the time of the loss and at the inception of the policy

Question 2

Sue's office building was damaged by a fire caused by a careless tenant. After paying Sue for the loss, the insurance company sued the tenant to recover its loss. This suit is based on the principle of

A) warranty.
B) insurable interest.
C) utmost good faith.
D) subrogation.