Which of the following individuals must have insurable interest in the insured?

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Which of the following individuals must have insurable interest in the insured?

a. producer
b. policy owner
c. beneficiary
d. actuary

Answer: b. policy owner-the policy owner must have an insurable interest in the insured, i.e. his/her own life if the policy owner and the insured is the same person, or in the life of a family member or a business partner.

Life 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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