insurable interest

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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.

References in periodicals archive ?
intricacies of the insurable interest doctrine and the likelihood of its
Evans that the insured's intent to sell a policy soon after issuance did not mean there was no insurable interest when the policy was purchased, if no third party was involved in the plan.
Another unique area of insurance law is the insurable interest principle, which requires that the insured have sufficient interest in the insured property so that it suffers a loss if the insured peril occurs.
With respect to setting the charity up as the owner and beneficiary of a new policy, there is the question of insurable interest, which is a matter of state law.
The Windquists, however, were ineligible to receive FCIC-reinsured coverage because they had no insurable interest in the crops.
Phoenix decision, New York's highest court also rejected life insurance companies' attempt to undermine 150 years of property rights in life insurance, specifically saying "no" to whether New York insurable interest law "prohibit[s] an insured from procuring a policy on his own life and immediately transferring the policy .
However, you do not have what is known as an insurable interest in your parents and therefore cannot take out a policy on their lives.
Terry Dwyer, vice president of Pru Benefit Funding, the COLI unit within Prudential Financial, said Pru has been focused on a trend toward insurable interest.
STOLI is defined as the initiation of a life insurance policy for the benefit of a person who, at the time of the creation of the policy has no insurable interest in the insured.
the court concluded that policyholders such as ABM, which provided janitorial, electrical and engineering services for the World Trade Center and its tenants, can make a Business Income claim for loss of profits caused by damage to property in which they have an insurable interest as long as the policy allows such claims.
This text points out that a disadvantage of weather insurance is that one has to show an insurable interest while, "An entity executing a weather derivative does not need to show an insurable interest in property, it just needs to be adversely impacted by fluctuations in weather.
However, remember that as you no longer have any insurable interest in each other, you remove any legal right to make a claim against the policies should anything happen to your ex-husband.