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Sagot :
Answer:
In order to avoid intentional losses, the underwriter will try to establish the insurable interest of the policyholder.
Explanation:
Insurable interest means that the policyholder must have a stake in the insured item or person, where a loss or damage would cause a financial or personal hardship. This concept helps prevent moral hazard and ensures that insurance is used to protect against genuine risks rather than to profit from losses.
By establishing insurable interest, underwriters can confirm that the policyholder has a legitimate reason to seek coverage, thus reducing the risk of intentional losses.
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