(a) Explain the following concepts as used in insurance:
(i) subject matter of insurance
(ii) subject matter of contract.
(b) State when a policy holder is expected to prove his insurable interest in the following classes of insurance:
(i) Burglary insurance
(ii) Marine insurance
(iii) Life assurance.
Explanation
(a) (i) Subject matter of insurance: This :is the life, limb, properties, right or potential legal liability under a policy.
(ii) Subject matter of contract: This is the financial interest of the insured in the subject matter of insurance.
(b) (i) Burglary insurance: This refers to forced entrance and exit.
(ii) Marine Insurance: In marine insurance the person has an insurable interest who benefit safely or due arrival of a property or prejudice by his loss or damaged thereto.
(iii) Life Insurance: In life insurance, the insured person must derive a finance or other kind of benefit from the continuous existence without damage of the insured life.