Which of the following is false?
A) An individual always has an insurable interest in his or her own life,
B) Any creditor has an insurable interest in the property of a debtor,
C) The holder of a contract who receives oil royalties has an insurable interest in the property,
D) The lessee of a building may have an insurable interest in the building even though he or she does not own it,
E) A father has an insurable interest in the life of his minor child.

Question

Quizplus · Accepted Answer

The statement that any creditor has an insurable interest in the property of a debtor is false. While a creditor may have an insurable interest in the life of a debtor or in property used as collateral for a loan, they do not automatically have an insurable interest in all of the debtor's property. Insurable interest is based on a financial relationship where the insured party would suffer financial loss upon the damage or loss of the property or upon the death of the insured person.

Which of the Following Is False