Juanita's grandfather loans valuable artwork to the Art Museum on the condition that the same will go to Juanita if the museum closes.She wants to purchase property insurance on the art work because she feels that it would be a great loss if any mishap occurs.Discuss the legal implications of this situation.

Juanita can purchase property insurance to protect the artwork in the museum provided that she can establish the existence of an insurable interest in property.She must demonstrate a monetary interest in the property which means that she stands to suffer a financial loss if the property is damaged or destroyed.However,for the policy to be effective,this insurable interest must exist when the loss occurs.