Tom buys a house and obtains from Union Insurance Company a fire insurance policy on the property. If fire destroys the house, to collect payment under the policy, Tom's insurable interest
a. exists only if the property is owned by Tom or a related individual.
b. exists only if the property is owned in in fee simple.
c. must exist when the loss occurs.
d. must exist when Union issues the policy and when the loss occurs.
Answer: C
Business Law
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