The principle of insurable interest states that the insured must suffer a personal monetary loss due to the occurrence of some event.

Question

Quizplus · Accepted Answer

The principle of insurable interest requires that the person purchasing the insurance policy must have a direct relationship to the risk being insured against, such that they would suffer a financial loss if the insured event occurs. This principle is fundamental to the legality and validity of an insurance contract.

The Principle of Insurable Interest States That the Insured Must