To prevent the use of the insurance policy for wagering purposes, the person who is to be indemnified under the contract must have:
A) a binder.
B) an insurable interest.
C) good faith.
D) a coinsurance clause.

Question

Quizplus · Accepted Answer

An insurable interest is required to prevent the use of insurance policies for wagering purposes. It ensures that the person seeking insurance has a legitimate stake in the preservation of the life or property insured, thereby reducing the risk of moral hazard.

To Prevent the Use of the Insurance Policy for Wagering