Asked by Dorothy Stanislaw on Jul 20, 2024
Verified
A pecuniary interest in property of another is insufficient to create an insurable interest in that property.
Pecuniary Interest
A financial interest, or the prospect of financial gain or loss, that may influence an individual's decisions or actions.
Insurable Interest
A financial or economic stake in the life or property insured, allowing an individual or entity to purchase insurance on the item or person.
Property
An area or thing owned by someone, which includes tangible assets like real estate and personal property, as well as intangible rights.
- Comprehend the principle of insurable interest and its essentiality within an insurance agreement.
Verified Answer
BT
Brandon ThomasJul 23, 2024
Final Answer :
False
Explanation :
An insurable interest in property does not necessarily require ownership; a pecuniary (financial) interest in the preservation of the property is sufficient to establish an insurable interest, as the potential loss would result in financial harm to the individual.
Learning Objectives
- Comprehend the principle of insurable interest and its essentiality within an insurance agreement.