Which of the following is true of insurable interest?
A)Sellers can retain the insurable interest to goods as long as they have the title to them.
B)Buyers cannot place insurance on goods.
C)Buyers cannot obtain an insurable interest if they might later reject the goods.
D)Buyers can obtain insurable interest on goods that are not mentioned in the contract.

Question

Quizplus · Accepted Answer

Sellers can retain the insurable interest in goods as long as they have the title to them. This is because they still have a financial interest in the goods until they are transferred to the buyer. Once the title transfers to the buyer, they can obtain an insurable interest in the goods.

Which of the Following Is True of Insurable Interest