Mark insured his car and subsequently gave the car to his son, David, as a birthday gift. David was involved in a car accident. Mark submitted an insurance claim with the insurer to repair the car, however, the insurer rejected Mark's claim. According to the insurance company, Mark was no longer the owner of the car, and thus they were not liable to pay for the car's repairs. Which of the following statements isCORRECT?

• A.For indemnity insurance, the interest must exist when the risk materialises, and since David is Mark's son, the policy is still effective.
• B.For indemnity insurance, the insurable interest must exist when the contract is concluded, therefore the insurer is incorrect to reject Mark's claim as the policy is still effective.
• C.For non-indemnity insurance, interest must exist when the risk materialises, therefore Mark lost his insurable interest in the car and this had caused the policy to lapse.
• D.For non-indemnity insurance, the interest must exist when the contract is concluded, therefore the insurer is incorrect to reject Mark's claim as the policy is still effective.
• E.For indemnity insurance, the interest must exist when the risk materialises, therefore Mark lost his insurable interest in the car when he gave it to David, and this caused the policy to lapse.