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 ?
knowledge that it clearly contains no insurable interest, the insurer
Hence, insurable interest is vital element to have insurance policy in all regimes.
In order to be entitled to indemnity under such an insurance contract, the insured must have an insurable interest in the property.
Insurable interest is a key principle in life insurance law.
In order to take out an insurance policy on someone's life, there must be some form of "insurable interest", or some reason why you might be worse off in the event of their death.
The beginning of the end for STOLI came in December of 2005, when the New York State Insurance Department released a General Counsel Opinion that STOLI-type arrangements violated insurable interest laws.
A Kansas district court ruled that an ex-spouse did not have an insurable interest in the life of her former husband because he objected to her attempts to obtain life insurance on his life pursuant to a court order, and that obtaining this insurance against his will was against public policy.
That particular stocks/property will be taken to determine the value at risk for which the insured has an insurable interest at the time of entering in to contract of insurance as well as at the time of loss.
In particular, this Article focuses on the amendments relating to insurable interest, the insured's duty of disclosure, interpretation of contractual clauses, double insurance, and insurance fraud.
Farmers buying the policies must certify in their policy applications, which also are signed by the agents, that they have a valid insurable interest in the insured crop.
The people he insured, however, admitted they had no insurable interest in the crop he insured.
Because of this risk, owners are said to have an insurable interest that can be shifted to another entity for consideration.