Question

State with Reasons whether the following statement is  TRUE or FALSE.

Insured must have insurable interest in the subject matter at the time of taking the policy.

Options

• True

• False 

Answer 1

Insured must have insurable interest in the subject matter at the time of taking the policy- True
Explanation:
The term “insurable interest” means that if a person is planning to get himself/herself or his/her property insured, then he/she must have an interest in it. Thus, insurable interest must exist at the time the policy is taken.