Ace the Florida Insurance Claims Adjuster Test 2026 – Jumpstart Your Adjusting Adventure!

Insurable interest refers to the legal concept that a person must have a lawful interest in the property or life being insured in order to purchase insurance. This means that they must face potential financial loss if the insured property or individual were to experience damage or loss. This distinguishes insurance from gambling, where a person has no actual interest in the outcome. Options A, C, and D are incorrect because they do not accurately capture the concept of insurable interest. Option A refers to interest rates, which are irrelevant to the concept. Option C refers to profits, which are not necessarily tied to insurable interest. Option D refers to the insurance company's interest, rather than the individual's interest, which is the key aspect of insurable interest.