Assignment of Insurable Interest(redirected from Insurable Interest Assignment)
Assignment of Insurable Interest
The transfer of insurable interest to another party. Insurable interest is the right to enter an insurance contract because one has a property or carries a risk that needs to be insured against. For example, one cannot buy life insurance providing coverage for one's friend's death. However, in assignment of insurable interest, one can purchase insurance on oneself and then sell or give it to another party. This allows the other party to collect the benefit should the insured event occur. Assignment of insurable interest is the only way by which one may collect insurance money when one does not have a direct interest in the insured event.