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

Question

Quizplus · Accepted Answer

An insurable interest exists when the insured party derives a financial or other type of benefit from the continuous existence of the insured object, and would suffer financial loss or other kinds of losses if the insured object were damaged or lost. In the case of a stolen truck, the buyer, not knowing the truck was stolen, still has an insurable interest because they stand to lose financially if something happens to the truck. However, if it's known that the truck was stolen, the legality and ethics of insuring such property come into question, but from a purely financial perspective, the buyer still has an insurable interest. The other options (B, C, D) clearly have insurable interests due to their financial stakes in the property or entity.

All but Which of the Following Hold an Insurable Interest