When does a seller's insurable interest terminate?
A) when title passes to the buyer
B) when risk of loss passes to the buyer
C) when the seller identifies the goods to be sent to the buyer
D) The seller never has an insurable interest, only the buyer.
E) The seller always has an insurable interest, but the buyer never has an insurable interest.

Question

Quizplus · Accepted Answer

A seller's insurable interest terminates when title passes to the buyer because at that point the buyer becomes the owner of the goods and assumes responsibility for any loss or damage. Until title passes, the seller has an insurable interest in the goods because they are still the rightful owner.

When Does a Seller's Insurable Interest Terminate