Practice question
A person wishes to insure a stranger’s warehouse solely because he hopes it burns and pays him. He has no actual right, valid contract, relation, or liability that could cause loss. Which is correct?
- The stated mere expectancy is not an insurable interest
- Any wish creates an insurable interest
- A policy label alone proves interest
- A stranger’s loss always belongs to everyone
- Premium payment conclusively creates property ownership
Legal references
- https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html — Insurance Code as amended by RA 10607, sections 10 and 13–19
Answer this question in flashcards to review your response and continue practicing.