Answer to Question 1
The insured has an insurable interest in his or her life. A person has an insurable interest in the life of another when such a relationship exists between them that a reasonable expectation of benefit will be derived from the continued existence of the other person.
With respect to property, ownership is the clearest type of insurable interest, but an insurable interest also arises when the insured would suffer a monetary loss by the destruction of the property.
Answer to Question 2
D