Question

Locate Sections 646 and 647 of the Insurance Act, RSA 2000, Ch. 1-3. Which of the following does NOT indicate an insurable interest? Mad out of 100 Select one:

a. Erin and Shannon lived together as a couple for several years, but have now been apart for even longer, and remain in a group of best friends
b. The three shareholders of a very successful restaurant are respectively also the restaurant general manager, chef and events manager
c. Riley is a professional hockey player who pays 15% of earings to a sports agent
d. Terry and Sid are receiving room and board for free from their cousin Jean while attending NAIT

Answer 1

Sections 646 and 647 of the Insurance Act, RSA 2000, Ch. 1-3 do not pertain to the concept of insurable interest. Option a, Erin and Shannon living together as a couple, does not indicate an insurable interest.

Step-by-step explanation:

Sections 646 and 647 of the Insurance Act, RSA 2000, Ch. 1-3 do not pertain to the concept of insurable interest. Insurable interest refers to having a financial or legal interest in the property or life being insured. Let's look at the options:

1. a. Erin and Shannon: While they were a couple, they may have had insurable interest in each other. However, since they have now been apart for a while, and remain in a group of best friends, their relationship no longer indicates insurable interest.
2. b. The three shareholders: The three shareholders of the restaurant have a financial interest in the business and could be considered to have insurable interest in the restaurant property.
3. c. Riley: As a professional hockey player, Riley pays a percentage of their earnings to a sports agent. This financial arrangement does not indicate an insurable interest.
4. d. Terry and Sid: While receiving room and board for free from their cousin, Jean, Terry and Sid do not have a financial or legal interest in the property they are staying in. Therefore, this situation does not indicate an insurable interest.

Based on this analysis, option a is the correct answer, as it does not indicate an insurable interest.