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The legal principle of insurable interest means which of the following statements are TRUE? Select TWO.
Suggested Answer: B, C
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Insurable Interest means that it is not possible to insure someone else's factory. The study guide explains that you can only take out insurance where you have at least partial ownership of that risk. Therefore option 3 is also correct as you have a partial risk if something were to happen to your supplier's factory. You can take out CBI insurance for this. see p.100-101 for further s of Legal Principles of Insurance
32 comments · newest first
DE
Devon
11 months ago
I thought you could insure anything, but this is confusing!
CR
Cristy
11 months ago
C is correct, you can insure your supplier's factory if you have an interest.
AL
Allene
12 months ago
Wait, can you really insure your supplier's factory? Sounds off.
LA
Lashonda
12 months ago
Totally agree, B is definitely true!
JU
Justine
1 year ago
You can’t insure someone else's factory.
DE
Deja
1 year ago
I thought you couldn’t insure someone else's property unless you had a direct interest, which makes me lean towards B and D.
ST
Stefany
1 year ago
I practiced a similar question where it was about personal property, and I think the key is whether you would suffer a loss. So maybe C is correct?
HA
Harris
1 year ago
I’m not sure about A and C. I feel like you can insure a factory if you have a business relationship, but I can’t recall the specifics.
AR
Arlette
1 year ago
I remember insurable interest means you have to have a stake in the property, so I think B is definitely true.
LI
Lilli
1 year ago
Okay, I've got a strategy. I'll read through the statements and ask myself whether each one is consistent with the idea of insurable interest. That should help me identify the two correct answers.
AM
Ammie
1 year ago
Hmm, this is a tricky one. I'm a bit unsure about the nuances of insurable interest and how it applies in different situations. I'll need to think this through carefully.
ST
Stanford
1 year ago
I think the key here is understanding the concept of insurable interest. I'll need to carefully consider the statements and determine which ones align with that principle.
PA
Paulina
1 year ago
I'm feeling pretty confident about this one. I've reviewed the concept of insurable interest, and I think I know which statements are true based on that. I'll select the two that I'm most certain about.
SH
Sharika
2 years ago
A and C, for sure! You've gotta protect your investments, even if they're not technically yours. It's like insuring your friend's wedding dress - you've got a vested interest in it!
SH
Sheridan
2 years ago
Haha, this question is a real head-scratcher! I bet the insurance company would love to insure my neighbor's car, but I don't think that's how it works. I'll go with B and D.
HE
Hershel
2 years ago
Yeah, I think both statements are true.
PA
Pamella
2 years ago
I agree, I also think it's not possible to insure your supplier's factory.
FA
Farrah
2 years ago
I think it's not possible to insure someone else's factory.
JA
Jaclyn
2 years ago
But insurable interest allows you to insure your own property or property you have a financial interest in, like a supplier's factory.
WA
Walton
2 years ago
Hmm, this is a tricky one. I'm going to go with A and D. You can insure your own supplier's factory, but not just anyone else's property.
PE
Penney
2 years ago
I'm pretty sure B and D are the correct answers. You can't insure something that doesn't belong to you, right? That's just common sense.
CA
Casey
2 years ago
D) it is not possible to insure your supplier's factory
DE
Desire
2 years ago
C) it is possible to insure your supplier's factory
EL
Elza
2 years ago
B) it is not possible to insure someone else's factory
CA
Caitlin
2 years ago
A) it is possible to insure someone else's factory
IS
Isreal
2 years ago
I disagree, I believe the correct answers are B and D.
LA
Lauran
2 years ago
I think A and C are true. You should be able to insure someone else's property as long as you have a legitimate interest in it.
LE
Leonida
2 years ago
I believe insurable interest is important for insurance to work properly. It ensures that the policyholder has a stake in the insured property.
TI
Timmy
2 years ago
I'm not sure about B and D. I think insurable interest allows for some flexibility in who can be insured.
SH
Shayne
2 years ago
I think C is also true. You can insure your supplier's property because it affects your business.
GE
Georgene
2 years ago
I agree, A is true. You can insure someone else's property if you have a legitimate interest in it.
JA
Jaclyn
2 years ago
I think the correct answers are A and C.