Which of the following statements about the principle of insurable interest is (are) true?

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Which of the following statements about the principle of insurable interest is (are) true?

I. It makes it difficult to measure the amount of an insured's loss.
II. It reduces moral hazard.

A) I only
B) II only
C) both I and II
D) neither I nor II

Answer: B) II only

Insurance

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