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Commerce · Q290

Insurance

Graduate and Post Graduate · Commerce · question 290

Q290

The insurable interest of a mortgagor in the mortgage’s life is equal to the amount of

A.
Original loan
Answer
B.
Outstanding loan plus interest
C.
Outstanding loan
D.
Installment due to be repaid within the next one year

Answer: Option A

Solution

Answer: Option A
Solution:
The insurable interest of a mortgagor in the mortgage's life is equal to the amount of original loan.