insurable interest

n (Law) law a financial or other interest in the life or property covered by an insurance contract, without which the contract cannot be enforced

Thesaurus

Noun

insurable interest - an interest in a person or thing that will support the issuance of an insurance policy; an interest in the survival of the insured or in the preservation of the thing that is insuredstake, interest - (law) a right or legal share of something; a financial involvement with something; "they have interests all over the world"; "a stake in the company's future"

insurable interest

Insurable Interest

A right, benefit, or advantage arising out of property that is of such nature that it may properly be indemnified.

In the law of insurance, the insured must have an interest in the subject matter of his or her policy, or such policy will be void and unenforceable since it will be regarded as a form of gambling. An individual ordinarily has an insurable interest when he or she will obtain some type of financial benefit from the preservation of the subject matter, or will sustain pecuniary loss from its destruction or impairment when the risk insured against occurs.

In certain jurisdictions, the innocent purchaser of a stolen car, who has a right of possession superior to all with the exception of the true owner, has an insurable interest in the automobile. This is not the case, however, where an individual knowingly purchases a stolen automobile.

Insurable interest is not dependent upon who pays the premiums of the policy. In addition, different people can have separate insurable interests in the same subject matter or property.

insurable interest

a person has such an interest in property or in the life of a person if damage or destruction of the property or death of the person would expose him to pecuniary loss or liability. See INSURANCE.

INSURABLE INTEREST. That right of property which may be the subject of an insurance.
2. The policy of commerce, and the various complicated rights which different persons may have in the same thing, require that not only those who have an absolute property in ships or goods, but those also who, have a qualified property in them, may be at liberty to insure them. For example, when a ship is mortgaged, and the mortgage has become absolute, the owner of the legal estate has an insurable interest, and the mortgagor, on account of his equity, has also an insurable interest. 1 Burr. 489. See 20 Pick. 259; 1 Pet. 163.

insurable interest

Insurable interest

An insurance term referring to the relationship between a policy's insured person or property and the potential beneficiary. The beneficiary must have an insurable interest in the insured person or property to receive payment of the policy if the insured died while the policy was in force.

Insurable Interest

The ability to derive profit or another benefit from an object, business or something else. For example, dentists have an insurable interest in their dental equipment because without it they would be unable to make a living. As the name implies, one may purchase an insurance policy to provide coverage for the loss of an insurable interest.

insurable interest

A right or interest in property or in the life of another that would cause the person to suffer a monetary loss if injury came to the property or to the other person. One must have an insurable interest in order to buy insurance, because the insurance is intended to compensate one for a loss.

insurable interest

insurable interest

insurable interest

Insurable Interest

insurable interest

insurable interest

Insurable interest

Insurable Interest

insurable interest

insurable interest

Words related to insurable interest

noun an interest in a person or thing that will support the issuance of an insurance policy

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