Question

What does insurable interest ensure?

a.

The insured gains undue financial advantage by effecting a contract of insurance.

b.

The proposer gains undue financial advantage by effecting a contract of insurance.

c.

The insured does not gain undue financial advantage by effecting a contract of insurance.

d.

The proposer does not gain undue financial advantage by effecting a contract of insurance.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).The proposer does not gain undue financial advantage by effecting a contract of insurance. Explanation:Insurable interest ensures that the proposer does not gain undue financial advantage by effecting a contract of insurance.

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Q. What does insurable interest ensure?
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