Insurable interest in property-liability insurance must exist
A) at the time of the loss,
B) when the coverage is paid for,
C) when the policy is received.

Question

Quizplus · Accepted Answer

Insurable interest in property-liability insurance must exist at the time of the loss to ensure that the insured has a legitimate stake in the property or item being insured against damage or loss. This requirement helps prevent insurance fraud and ensures that insurance serves its purpose of protecting against actual financial losses.

Insurable Interest in Property-Liability Insurance Must Exist