Paper 2 · Insurance
What does the principle of insurable interest require?
AThe insured must pay the full value of the item as a premium
BThe insurer must always pay out the full sum insured regardless of loss
CThe insured may insure any person's property, not only their own
DThe insured must directly suffer loss if the risk insured against occurs
Explanation: Insurable interest requires that the insured directly suffers loss if the risk occurs.
Derived from ZIMSEC Commerce 7103/2 Paper 2, June 2004, Q9
