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      Question

      What is the principle of insurable interest in

      insurance?Β 
      A The insured must have a financial or other interest in the subject matter of the insurance policy Correct Answer Incorrect Answer
      B The insurer must have a financial interest in the subject matter of the insurance policy Correct Answer Incorrect Answer
      C The insured must have no interest in the subject matter of the insurance policy Correct Answer Incorrect Answer
      D The insurer must have no interest in the subject matter of the insurance policy Correct Answer Incorrect Answer

      Solution

      The principle of insurable interest requires that the insured must have a financial or other interest in the subject matter of the insurance policy, which means they will suffer a financial loss if the subject matter is damaged or destroyed.

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