Question

Kelly purchases a house from John. She borrows $75,000 from First City Bank that, along with her $25,000 down payment, equals the $100,000 purchase price of the home. Who has an insurable interest in this home?

Answer 1

Answer:

Kelly and First city bank

Explanation:

The insurable interest means the party has the right to insured his /her property. It involves the financial interest in the property without which the insurable interest can't be involved.

In the given scenario, the Kelly purchase a house from John for $100,000. For which she borrows $75,000 from the city bank and $25,000 down payment. In this two-party have a financial interest in the property i.e Kelly and the first city bank