Which of the following statements is true regarding the No Benefit to Bailee condition?

The No Benefit to Bailee condition is designed to protect the interests of the owner of personal property in a bailment situation. This principle ensures that while the bailee—who is the party temporarily holding the property—might have some responsibilities regarding its care, they cannot benefit from the insurance coverage on the property. This means that in the event of a loss, the bailee cannot make a claim against the owner's insurance policy for compensation. Instead, the liability and responsibility for the property remain with its owner.

This condition is particularly important in scenarios where personal property is entrusted to others for services, such as repair or storage. The No Benefit to Bailee rule safeguards the owner's financial interests, ensuring that any insurance payout due to loss or damage goes to the owner and not to the party holding the property. Understanding this principle is essential for anyone dealing with insurance policies covering personal property and for ensuring that liability is appropriately assigned in bailment scenarios.