When must insurable interest exist in property insurance?

In property-casualty insurance, insurable interest must exist at the time of the loss—which means the destruction of the property must cause someone direct financial loss, and the limit of insurable interest is the amount of financial harm they suffer.

When must an insurable interest exist for a property insurance policy quizlet?

insurable interest must exist at the time of the loss. Underwriting is the process of reviewing applications for insurance and the information on the application. In other words, it is a risk selection process.

At what time must a policyowner have insurable interest?

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid? With life insurance, insurable interest must exist only at the policy inception.

Which of the following must have insurable interest in the insured?

ANSWER: D EXPLANATION: The policyowner must have an insurable interest in the insured (his/her own life if the policyowner and the insured is the same person), or in the life of a family member or a business partner.

In which type of insurance insurable interest must exist only at the time of insurance?

As a rule of thumb, for property insurance, the insurable interest must exist both at the time of purchase of insurance and at the time of occurrence of loss. For life insurance, the insurable interest must exist at the time of purchasing life insurance.

When must insurable interest exist in life insurance fire insurance and marine insurance?

In a marine insurance contract the presence of insurable interest is necessary only at the time of the loss. It is immaterial whether he has or does not have any insurable interest at the time when the marine insurance policy was taken.

Under which situation must insurable interest exist between the applicant and insured at the time of application?

Insurable interest must exist only at the time the applicant enters into a life insurance contract. It must continue for the life of the policy. If no insurable interest exists when a policyowner buys a life insurance policy, the contract may still be enforced. It must exist when a claim is submitted.

In which type of insurance interest must exist only at the time of insurance a life insurance B Marine Insurance C fire insurance D All of the above?

Incase of the marine insurance, the insurable interest must exist at the time the loss occurs. II. Incase of fire insurance, insurable interest must exist both at the time of the contract and at the time of loss.