Question

Ruppart Manufacturing has a contract for the sale of 100 cases of teaching supplies to Teachers Co-op, Inc. The payment of the order is to be made in installments over the next year. Ruppart Manufacturing keeps a security interest in the cases sold to assure payment by Teachers Co-op, Inc. When the order is completed, Ruppart ships the order. Legally _____.
a. both Ruppart and Teachers have an insurable interest in the supplies.
b. only Ruppart has an insurable interest in the supplies.
c. only Teachers has an insurable interest in the supplies.
d. neither Ruppart nor Teachers has an insurable interest in the supplies.

Answer 1

Answer:

A - both Ruppart and Teachers have an insurable interest in the supplies.

Explanation:

A business, person, company, etc, has an insurable interest when the loss of damage of a supply or resource would cause the person to suffer a financial loss. In this case, both Ruppart and Teachers have an insurable interest given that if something were to happen when Ruppart ships the order, they would not be beneficiated as well as Teachers given that if they were not to pay for those cases they would have an interest, also a financial loss.