The insured's owned the property when the damage occurred, so they had insurable interest
at the time, and they gave prompt notice as is required by the policy.
The trial court granted summary disposition in favor of Prime One with respect to Petro Mart's claim because it determined that Petro Mart did not possess an insurable interest
in the gas pumps.
This strategy might also make moot the insurable interest
question in cases where the kids are also looking to fill a gap in their own retirement income planning, he adds.
In addition to insurable interest
violations, many of these policies were thought to contain false statements, particularly with respect to the insureds' net worth, which was overstated in order to qualify them for larger face amounts of insurance.
Most states have statutes that require that a person purchasing an insurance policy have an insurable interest
in the life of the person whose life is insured.
To establish an insurable interest
under property insurance following 3 pre-requisites are to be followed.
At a minimum, the 2009 amendment fails to address the following: (1) the "real" holder of an insurable interest
remains confusing, (2) the time when an insurable interest
must exist, (3) the period in which the insured owes the duty of disclosure to the insurer, (4) potential obstacles in implementing the incontestability provision, (5) possible unfairness associated with the rule regarding the construction and governance of contractual terms, and (6) the moral hazard issue embedded in rules relating to double insurance.
The false applications showing insurable interest
, moreover, were not presented to the government; they were presented to North Central.
An insurable interest
exists when the beneficiary has a reasonable expectation that he will benefit--by love, affection, or finances--from the continued life and health of the person who is insured.
However, if the law in the state of the donor's domicile does not recognize that a charity has an insurable interest
in the life of the donor, complications may arise.
See "If A Stranger Calls," IA May 2008) When a person buys a policy, it's usually because she wants to protect an insurable interest
--say, her husband's insurable interest
in her, or her children's, or that of a business partner.
This Note shows that SPIN-Life insurance policies contradict the nature and purpose of life insurance and should be considered securities or wagers, not insurance contracts; make human lives a commodity; violate current insurable interest
laws and public policy against wager contracts; and should be declared void ab initio.