Why was Aiden's claim on behalf of Darren refused after Darren had an accident with Aiden’s sold car?

Prepare for the CII Certificate in Insurance - Insurance, Legal and Regulatory (IF1) Exam with interactive questions. Each question comes with hints and detailed explanations. Equip yourself for success!

The claim on behalf of Darren was refused because he had no financial interest in the car at the time of the claim. In insurance terms, a financial interest means that the claimant must have a stake in the value of the item at the time of the loss or damage. In this context, Aiden had sold the car to Darren, which likely transferred ownership and thus the financial interest to Darren. If Aiden no longer had a legal or financial stake in the vehicle, he was not in a position to make a claim related to it. This principle protects the integrity of insurance, ensuring that claims are only made by those who have a legitimate interest in the insured property.

The other options address different aspects of insurance that may relate to other scenarios but do not apply here because the key issue is the lack of financial interest Aiden had in the car following its sale to Darren.

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