Multiple choice

Directions: Choose the correct option for the given question.

In fire insurance, insurable interest must be present

  1. both at the time of insurance and at the time of loss of the subject-matter.

  2. at the time of loss of the subject-matter.

  3. at the time of effecting insurance.

  4. at the time of receiving the payment.
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A Correct answer
Explanation

In fire insurance, the principle of insurable interest dictates that the insured must have a financial interest in the property at the time of the policy inception and at the time of the loss.

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