General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Regarding insurable interest, a person has an unlimited insurable interest in:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A person has an unlimited insurable interest in their own life and health because they bear the direct financial and personal consequences of their own sickness, injury, or death. This is the foundation that allows a person to buy coverage on themselves without limit. Insuring another person requires a recognized insurable interest in that person's life - a stranger has no such interest, which prevents wagering.
Why the other options are wrong
- B) A person generally has no insurable interest in a stranger; such coverage would be a wager.
- C) Property ownership is a separate insurable interest concept; life and health are personal.
- D) Insurable interest must exist at the time coverage is applied for and issued, not after.
Memory hook
Yourself = unlimited stake. Others = only if their loss hurts you.