Question

What is Insurable Interest in insurance?

a.

A condition where insurance is not provided

b.

A condition in which only the insurer benefits from the policy

c.

A condition in which the insured and the beneficiary have no relationship

d.

A condition where the applicant and the beneficiary would suffer emotional or financial loss in the event of a specified event

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).A condition where the applicant and the beneficiary would suffer emotional or financial loss in the event of a specified event Explanation:Insurable Interest in insurance refers to a condition where the applicant and the beneficiary would suffer emotional or financial loss in the event of a specified event. Without insurable interest, an insurance contract is invalid.

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Q. What is Insurable Interest in insurance?
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