Question

What is insurable interest?

a.

The owner of the insurance must have a financial interest in the continued existence of the insured and would suffer significant financial loss in the event of death of the insured

b.

The process of verifying insurance needs

c.

The process of assessing violence potential

d.

The process of determining the quantified value of financial need

Posted under IC22 Life Insurance Underwriting

Answer: (a).The owner of the insurance must have a financial interest in the continued existence of the insured and would suffer significant financial loss in the event of death of the insured Explanation:Insurable interest is one of the basic concepts of life insurance, where the owner of the insurance must have a financial interest in the continued existence of the insured and would suffer significant financial loss in the event of death of the insured.

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