Difference between Quiz section 2 and Final Exam - please explain

Difference between Quiz section 2 and Final Exam - please explain

by Kristopher Tagliarini -
Number of replies: 1

I got the first top question on the Unit 2 quiz correct, but the similar question on the Final Exam I answered incorrectly. Can someone explain how the Final Exam question is wrong. Thank you.

Which of the following has an insurable interest in a property?

Choose one answer.

A. A mortgage company (correct answer)

B. A mother-in-law who gives cash as a gift

C. A friend who purchased insurance in his own name because the owner refuses to buy insurance

D. The son of owner who expects to inherit property

Correct

Marks for this submission: 1.00/1.00.

 

 

Which of the following does not have an insurable interest in a property?

Choose one answer.

A. A friend who purchased insurance in his own name because the owner refuses to buy insurance

B. A mortgage company

C. The son of owner who expects to inherit property

D. A mother-in-law who gives cash as a gift (correct answer)

Incorrect

Marks for this submission: 0.00/1.00.

In reply to Kristopher Tagliarini

Re: Difference between Quiz section 2 and Final Exam - please explain

by Jan Bradburn- -

Kristopher,

I think you've uncovered an error in the questions.  One question asks who HAS an insurable interest in the property and the other question asks who DOES NOT HAVE an insurable interest.

The correct question is who HAS an interest.  The only person with an INSURABLE interest in this list is the mortgage company.  Those who provide cash gifts or "expect" to inherit the property as well as a friend of the owner would not be able to purchase insurance because they can't prove an economic interest.  The definition of insurable interest is: one would suffer economic loss from an adverse happening to the property.  It must exist in order for insurance to respond and it is closely tied to the principle of indemnity.

The final exam question is a worded incorrectly.  I'm sure it wasn't noticed as a typo because nothing is spelled wrong.  I will have it corrected today.  I can also correct the score on your final exam.

Jan