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In Macaura v. Northern Assurance Co., it was held that a member who insured the company's property in his own name could not recover because:
AThe loss was self-inflicted
BNo shareholder has an insurable interest in the company's property
CThe policy was forged
DThe company was unregistered
Answer & Solution
Correct answer: B. No shareholder has an insurable interest in the company's property
A shareholder has no legal or equitable interest in the company's assets, so Macaura had no insurable interest in the timber owned by the company.
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