Exam FAM Practice Question 3
Study guide: Exam FAM
In each of the following situations a claim is made under an insurance policy. Determine the situation in which the policyholder had an insurable interest at the time the law requires one.
- A) A woman buys a policy on her husband's life while they are married; they later divorce, she keeps paying the premiums, and he dies
- B) A homeowner sells her house but keeps her homeowners policy in force; the house burns down two weeks after the sale
- C) A company insures a warehouse it is only thinking of buying; it has made no offer and signed no contract when the warehouse burns down
- D) An investor with no financial or family tie to a stranger buys a policy on the stranger's life, naming himself beneficiary
- E) A man insures his neighbour's house, which he expects to inherit, against fire; the house burns down
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