All of the following will support an insurable interest for purposes of purchasing property and liability insurance EXCEPT

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All of the following will support an insurable interest for purposes of purchasing property and liability insurance EXCEPT

A) close family relationship.
B) potential legal liability.
C) secured creditors.
D) a contract right.

Answer: A) close family relationship.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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The voluntary relinquishment of a legal right is called
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