If John's father transfers ownership of a house to John, which one of the following statements regarding insurance on the house is CORRECT?

A) John can buy insurance because he has an insurable interest.

B) John must purchase the house from his father to obtain an insurable interest in it.

C) John's father must retain his policy on the house.

D) John's father must assign his policy to John as well.

Answer: A

Principles of insurance

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