Asked by Krystal Phengsomphone on May 04, 2024
Verified
An insurable interest is the right to insure the goods against any risk of loss such as damage or destruction.
Insurable Interest
A stake in the value of an entity or event for which an insurance policy is purchased to mitigate the risk of loss.
Risk of Loss
Refers to the legal responsibility for the damage, destruction, or loss of property, determining which party bears the risk.
- Recognize the application of common law and UCC rules in sales contracts, including concepts of insurable interest and unconscionability.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
True
Explanation :
An insurable interest is the right to insure the goods against any risk of loss such as damage or destruction.When an insurable interest is created in the goods is important.Both the buyer and the seller can insure themselves for potential loss in the event the goods are damaged or destroyed at some point in the transaction.A key point is identifying the earliest time in the transaction that the buyer can claim an insurable interest.
Learning Objectives
- Recognize the application of common law and UCC rules in sales contracts, including concepts of insurable interest and unconscionability.
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