California Insurance Code & EthicsQuestion 38 of 158
When must an insured have an insurable interest in property covered by a California homeowners policy?
a.At the time of the loss
b.Only at the inception of the policy
c.Throughout the policy period but not necessarily at the loss
d.Insurable interest is not required for property insurance
Explanation
Insurance Code §286 requires that, in property insurance, the insured have an insurable interest in the property at the time of loss. This is the key difference from life insurance, where the interest must exist at inception only.
Law Reference: Cal. Ins. Code §286Practice all 158 questions free — no signup required.
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