Question

What properties does insurable interest have?

a.

Definite relationship between two parties and legal commitments if future earnings cease

b.

Indefinite relationship between two parties and financial commitments if future earnings cease

c.

Definite relationship between two parties and financial commitments if future earnings increase

d.

Indefinite relationship between two parties and financial commitments if future earnings increase

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Definite relationship between two parties and legal commitments if future earnings cease Explanation:Insurable interest has properties of a definite relationship between two parties and financial commitments if future earnings cease.

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Q. What properties does insurable interest have?
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