Question

A valid insurable interest may exist between the policyowner and the insured when the policy is insuring any of the following:

Answer 1

A valid inurable interest exists between the policyowner and the insured when the policy is insuring things like medical expenses, death of the policyholder, car damage or theft, and dwelling damage or burglary.

Step-by-step explanation:

A valid insurable interest may exist between the policyowner and the insured when the policy is insuring any of the following:

Medical expenses

Death of the policyholder

Damage or theft of the car

Damage or burglary of the dwelling

In each of these cases, there is a direct financial risk to the policyowner. For example, if the policyowner is paying for car insurance, they have a financial interest in the car being protected from damage or theft. Similarly, if the policyowner is paying for life insurance, they have a financial interest in ensuring that their family is taken care of in the event of their death.