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Flashcards in 4 Insurable Interest Deck (5)
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1

What is the subject matter of an insurance contract?

The insured's financial interest in the subject matter of the insurance?

2

What is the definition of insurable interest?

The legal right to insure arising out of a financial relationship, recognised by law, between the insured and the subject matter of insurance.

3

When must insurable interest exist in general insurance?

Always at the time of the loss and generally at inception, although reasonable expectation at the inception may be sufficient.

4

How do insurers insure part of or all of the risk they have assumed under a policy?

By reinsurance

5

What are the three main ways in which insurable interest may arise?

* Common law
* Under contract
* Under statue