All but which of the following hold an insurable interest?
A) Shareholders in a closely held corporation to the extent of their interest in the corporation's property.
B) A lessee of property.
C) A seller with a purchase money security interest.
D) A buyer of a truck, whether or not the buyer had knowledge of the fact that the truck was stolen by the seller.

Question

Quizplus · Accepted Answer

Insurable interest is a fundamental requirement in insurance law, indicating that the insured must have a legitimate interest in the safety or preservation of the object of insurance. Shareholders, lessees, and sellers with a purchase money security interest all have a financial stake in the property, thus holding an insurable interest. However, a buyer of stolen property (without knowledge of the theft) does not have a legal title or rightful ownership, undermining the basis for an insurable interest.

All but Which of the Following Hold an Insurable Interest