A policyholder must have a(n) ________ in what is being insured, meaning that the policyholder must be the one at risk to suffer an economic loss.
A) speculative interest
B) uncertain stake
C) unsecured holding
D) insurable interest

Question

Quizplus · Accepted Answer

Insurable interest means that the policyholder stands to suffer an economic loss if the event insured against occurs. In other words, the policyholder must have a financial or legal stake in the property or person being insured. Speculative interest refers to a potential gain rather than a potential loss, uncertain stake and unsecured holding are not relevant terms in insurance policies.

A Policyholder Must Have A(n) ________ in What Is Being