4 Insurable Interest Flashcards
1
Q
What is the subject matter of an insurance contract?
A
The insured’s financial interest in the subject matter of the insurance?
2
Q
What is the definition of insurable interest?
A
The legal right to insure arising out of a financial relationship, recognised by law, between the insured and the subject matter of insurance.
3
Q
When must insurable interest exist in general insurance?
A
Always at the time of the loss and generally at inception, although reasonable expectation at the inception may be sufficient.
4
Q
How do insurers insure part of or all of the risk they have assumed under a policy?
A
By reinsurance
5
Q
What are the three main ways in which insurable interest may arise?
A
- Common law
- Under contract
- Under statue
