Question

Assertion: The concept of insurable interest is fundamental to all insurance contracts.

Reasoning: It ensures that the insured has a legitimate financial interest in the subject matter insured.

Options

• A is true and R is the correct explanation of A.

• A is true, but R is not the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is true and R is the correct explanation of A.