Advanced Placement (AP), 26.06.2020 15:01 ryanbasdao

Mr. Isaac is lending Gh₵20000 to Mr. Hayford, to be repaid over five years. Mr. Isaac would like to effect a policy on Mr. Hayford’s life to cover the loan should Mr. Hayford die. Mr. Hayford would like to insure Mr. Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early. (a)What is the extent of insurable interest in each case? (b)Consider any necessary action if the loan was later repaid earlier than anticipated what happens to the policy? (15marks) B

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Mr. Isaac is lending Gh₵20000 to Mr. Hayford, to be repaid over five years. Mr. Isaac would like to...