When must an insurable interest exist for a property insurance policy quizlet?

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When was an insurable interest exist in a property policy?
When must an insurable interest exist for a life insurance policy quizlet?
At what time the insurable interest must be present in case of life insurance?
Where does insurable interest exist?

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Answer: C

A person cannot contract for life insurance on another individual unless the benefits are payable to the individual insured, the insured's personal representative, or to a person having an insurable interest in the insured at the time the contract is made. The following individuals are deemed to have an insurable interest in an insured: individuals related closely by blood or by law, as well as a substantial interest engendered by love and affection, and persons with a lawful and substantial economic interest in having the life, health, or bodily safety of the insured individual continue. A spouse, child, and employer would therefore have an insurable interest in an insured. However, a neighbor does not have an insurable interest in a person merely because they are neighbors.

representations are statements made by the applicant for insurance

a contract is voidable if the representation is material, false, and relied on by the insurer

material means that if the insurer knew the true facts, the policy would not have been issued, or would have been issued on different terms

reliance means that the insurer relies on the misrepresentation in issuing the policy at specified premium

an innocent misrepresentation of a material fact, if relied on by the insurer makes the contract voidable

1 ) In life, health, and accident insurance (Sec. 20)
2) A change of interest in the thing insured after the occurence of an injury which results in a loss (Sec. 21)
3) A change of interest in one or more of several things, separately insured by one policy (Sec. 22)
4) A change of interest by will or succession on the death of the insured (Sec. 23)
5) A transfer of interest by one of several partners, joint owners, or owners in common, who are jointly insured, to the others (Sec. 24)
6) When a policy is so framed that it will inure to the benefit of whomsoever, during the continuance of the risk, may become the owner of the interest insured (Sec. 57)
7) When there is an express prohibition against alienation in the policy, in case of alienation, the contract of insurance is not merely suspende but is avoided (Art. 1306 Civil Code, see Sec. 24)

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When was an insurable interest exist in a property policy?

In property-casualty insurance, insurable interest must exist at the time of the loss—which means the destruction of the property must cause someone direct financial loss, and the limit of insurable interest is the amount of financial harm they suffer.

When must an insurable interest exist for a life insurance policy quizlet?

Insurable interest must exist only at the time the applicant enters into a life insurance contract. It must continue for the life of the policy. If no insurable interest exists when a policyowner buys a life insurance policy, the contract may still be enforced.

At what time the insurable interest must be present in case of life insurance?

The insurable interest must be present at the time of taking policy and at the time of loss.

Where does insurable interest exist?

Normally, insurable interest is established by ownership, possession, or direct relationship. For example, people have insurable interests in their own homes and vehicles, but not in their neighbors' homes and vehicles, and almost certainly not those of strangers.