Observation

 

Candidates were asked to list and explain five characteristics of insurable interest.

 

Few of the candidates attempted the question and scored low marks.

 

Some of the responses expected from the candidates were:
           
Characteristics of insurable interest

(a) There must be the life, property, right or potential liability capable of being insured.

(b) The life, property, right or potential liability must be the subject matter of insurance.

(c) The relationship between the insured and the subject matter of insurance must be recognized at law.

(d) The insured must stand in a relationship with the subject matter of insurance whereby he benefits by its safety and would suffer if the subject matter is lost, damaged or destroyed.

(e) The subject matter of insurance must be definite and be easily recognized.

(f) The subject matter of insurance must be capable of financial valuation.