Question 3 (15 marks) Henry borrowed $500,000 from the CC Bank to purchase a food truck. He keeps the food truck at a parking lot owned by the Convenience Parking Company. He uses the food truck to earn income by selling grilled cheese burgers. His food truck attracts hundreds of customers per day. Peter is one of his loyal customers, who purchases Henrys signature cheese burger every week.

(a) What are the purposes of principle of insurable interest? (3 marks)

(b) Based on the provided information, determine whether CC Bank, Convenience Parking Company and Peter have an insurable interest in Henrys food truck respectively. If insurable interest exists, how is it supported? If there is no insurable interest, why? (8 marks)

(c) A drunk driver ran a red light and smashed into Henrys food truck. The cost to repair the food truck is $80,000. Henry collects $80,000 from his insurance company. Explain how the principle of subrogation applies in his collision loss. (4 marks)