Question

When does lack of insurable interest exist?

a.

When the beneficiaries are neighbours, casual acquaintances, friends etc.

b.

When the beneficiary has a contractual obligation towards the insured

c.

When the insured has no financial loss or obligations created by his death

d.

When the amount of coverage necessary to replace the financial loss by the beneficiary is lower than the insurance coverage

Posted under IC22 Life Insurance Underwriting

Answer: (a).When the beneficiaries are neighbours, casual acquaintances, friends etc. Explanation:Lack of insurable interest exists when the beneficiaries are neighbours, casual acquaintances, friends etc.

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Q. When does lack of insurable interest exist?
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