A condition precedent to an insurance contract is the?

A. extent of the cover granted
B. right to cancel the insurance contract
C. right to take possession of the damaged property
D. existence of the subject matter of insurance

Correct Answer: Option D

D. existence of the subject matter of insurance

Explanation

Contract Subject matter of insurance is the life, limbs, property, rights or any potential legal liability insured under a policy. Subject matter of the contract is the insured’s financial interest in the subject matter of insurance.