Coy, who plans to buy some investment property in the near future, has been told by his know-it-all brother-in-law he should not buy an insurance policy on that property unless or until he has an insurable interest in that property. If Coy wants property insurance to cover a claim, Coy should have an insurable interest in that property:

a, both when he buys the insurance and on the date when a loss occurs

b. on the date when a loss occurs

c. on the insurance policy's inception date

d. when he buys the insurance

Insurable interests are vitally important in insurance for all the following reasons EXCEPT:

a. Insurable interest requirements help to measure the amount of an insured's financial loss.

b. Insurable interest requirements reduce the moral hazard.

c. The premium is based on the insured's insurable interest.

d. Insurable interest requirements keep the insurance policy from being a gambling contract.

Which of the following should have an endorsement added to his personal auto policy?

a. Earl is a beekeeper and honey manufacturer who occasionally makes deliveries using his own pickup truck.

b. Jack owns his own computer-repair business and occasionally uses his small pickup to return repaired computers to his clients.

c. Homer uses his pickup to distribute feed to the cattle on his ranch.

d. Wendell is a US Postal Service worker who uses his pickup truck to deliver mail on his rural route.

Victor's company provides him with a car, so he does not own his own vehicle. Victor would nevertheless like to procure a personal auto policy (PAP). What does his agent/insurer need to do in order to issue a PAP to Victor?

a. Review Victor's driving record.

b. Contact Victor's company for its insurance information.

c. Endorse the PAP with the named nonowner coverage endorsement.

d. Issue a standard, unendorsed PAP