When must an insurable interest legally exist in life insurance?
A) only at the time of the insured's death
B) only at the inception of the policy
C) only at the time the beneficiary is paid
D) both at the time of the insured's death and at the inception of the policy
Question 2
Which of the following statements describes how losses will be settled if a property insurance policy is written on a replacement cost basis?
A) Losses are settled without the applicable deductible.
B) Losses are settled without a deduction for depreciation.
C) The insurer must replace the damaged or destroyed property in lieu of a cash settlement.
D) The policy is converted to a valued policy.
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