Which of the following statements regarding insurable interest is true?

Insurable interest is a fundamental principle in insurance that specifies that the insured must have a stake in the subject matter insured at the time of the loss. This means that the policyholder should stand to suffer a financial loss if the insured property is damaged or destroyed.

The correctness of the statement depends on the fact that insurable interest must be present at the moment of loss for a claim to be valid. For example, if a person takes out a life insurance policy on another individual, they must have a legitimate interest in that person's life at the time of the insured event (the person's death). If insurable interest is not present at that time, the claim may be denied.

In contrast, the other options do not accurately reflect the nature of insurable interest. It is necessary for the policyholder to possess insurable interest at the moment a loss occurs, which distinguishes it from the other claims that are either too broad or incorrect regarding the application of this principle in different types of insurance products.