O-LevelCommerceInsurance7100/12 · Oct/Nov 2019 · Q271 Mark

What does the principle of insurable interest state?

AThe insured cannot be compensated and keep the damaged goods.

BThe insured cannot make a direct financial loss.

CThe insured must have a direct financial interest.

DThe insured must tell the whole truth.

✓ Correct answer

C: The insured must have a direct financial interest.

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Topic: Insurance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2019 Paper 1 Variant 2, question 27.

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