Acem Practice Test & Exam Prep | Australia

The separate corporate personality is disregarded when insuring physical assets, allowing sole shareholders to claim directly for corporate losses. A creditor of a company has a proprietary interest in the company's inventory and can maintain an insurable interest ahead of the company. Shareholders own a proportional percentage of corporate assets and can insure them under their personal insurance policies. A shareholder has no legal or equitable interest in the assets of the company, so they cannot insure corporate property in their own name.