{"id":32065,"date":"2024-04-15T08:55:25","date_gmt":"2024-04-15T08:55:25","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=32065"},"modified":"2024-04-15T08:55:25","modified_gmt":"2024-04-15T08:55:25","slug":"according-to-common-law-when-should-insurable-interest-be-present-in-a-general-insurance-contract","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/according-to-common-law-when-should-insurable-interest-be-present-in-a-general-insurance-contract\/","title":{"rendered":"According to common law, when should insurable interest be present in a general insurance contract?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6aaac1a53b0b2\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    At the time of taking policy                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    At the time of claim                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Both A &amp; B                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>C. Both A &amp; B<\/strong><\/p>\n<p>Insurable interest is a legal concept that requires an insured person to have a financial interest in the subject of the insurance policy in order to be able to make a claim. This interest must exist at the time the policy is taken out and must continue to exist until the claim is made.<\/p>\n<p>There are two main types of insurable interest: pecuniary interest and moral interest. Pecuniary interest is a <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> financial interest in the subject of the insurance policy. For example, if you own a car, you have a pecuniary interest in it and would be able to take out insurance on it. Moral interest is a non-financial interest in the subject of the insurance policy. For example, if you are the parent of a child, you have a moral interest in their well-being and would be able to take out insurance on their life.<\/p>\n<p>In order to be valid, an insurance contract must meet certain requirements, including the requirement that the insured person has insurable interest in the subject of the insurance. This requirement is designed to prevent <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> people from taking out insurance policies on things that they do not have a financial or moral interest in, such as the lives of strangers.<\/p>\n<p>If an insured person does not have insurable interest in the subject of the insurance policy, then the policy may be considered void and the insurer may not be liable to pay out any claims.<\/p>\n<p>Here are some additional details about each option:<\/p>\n<ul>\n<li>Option A: At the time of taking policy. This is the most common requirement for insurable interest. The insured person must have an insurable interest in the subject of the insurance policy at the time the policy is taken out.<\/li>\n<li>Option B: At the time of claim. In some cases, insurable interest may also be required at the time of claim. This is usually the case for life insurance policies. For example, if you take out a life insurance policy on your spouse, you will need to have insurable interest in their life at the time the policy is taken out and at the time you make a claim.<\/li>\n<li>Option C: Both A &amp; B. This is the correct answer. Insurable interest must be present in a general insurance contract at both the time of taking policy and the time of claim.<\/li>\n<li>Option D: None of the above. This is an incorrect answer. Insurable interest is a legal requirement for general insurance contracts.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>According to common law, when should insurable interest be present in a general insurance contract?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/according-to-common-law-when-should-insurable-interest-be-present-in-a-general-insurance-contract\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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