Multiple choice

Which of the following is not correct with regards to insurable interest?

  1. Father taking out insurance policy on his son

  2. Spouses taking out insurance on one another

  3. Friends taking out insurance on one another

  4. Employer taking out insurance on employees
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Insurable interest is essentially a monetary interest which one should have on the continuing existence of the object of insurance therefore friends taking out insurance on one another is not insurable interest. 

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