UK: a legal or equitable financial interest, in property or in the happening of some event; such an interest is essential for the validity of a contract of insurance; in life insurance the policy holder must have a financial interest in the life assured at the time the policy is issued.
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UK: A principle of insurance whereby a policy is not valid unless the insured person stands to suffer a financial loss if the insured event occurs (e.g. loss or damage to property or creation of a liability), or benefit from the non-occurrence of the event, i.e. the property being preserved or no liability being created. Generally, an insurable interest must exist when the policy is issued and at the time of loss except in the case of marine insurance, when interest is required only at the time of loss, and in life insurance when interest is required only at the inception. See GAMBLING ACT; POLICY PROOF OF INTEREST.
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US: An interest by the insured person in the value of the subject of insurance, including any legal or financial relationship. Insurable interest usually results from property rights, contract rights, and potential legal liability.
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MEDICAL,USA: Concern of an insured or beneficiary in property or the life of an individual in which there would be financial loss if the insured died or if the property is damaged or destroyed. For example, if an individual sells an automobile and is paid in installments, he or she has an insurable interest in the automobile in proportion to how much money remains unpaid. The buyer also has an insurable interest.
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If an insured wishes to enforce a contract of insurance before the Courts he must have an insurable interest in the subject matter of the insurance, which is to say that he stands to benefit from its preservation and will suffer from its loss. In non-marine insurances, the insured must have insurable interest when the policy is taken out and also at the date of loss giving rise to a claim under the policy. In life insurance the insured must have insurable interest must when the policy is taken out and in marine insurance the insured must generally have insurable interest at the date of loss giving rise to a claim under the policy.
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Insurable interest means the legal right to insure that is to say that it arises out of a relationship between the proposer and the subject matter of Insurance. For insurable interest to exist there must be property, rights, interest, life or liability which must be insured and the insured should have a legally recognized relationship thereto. He benefits by the safety of the property or is prejudiced by its loss. Insurable interest could arise in a number of ways such as (01) ownership (02) mortgagee (03) trustee (04) Bailee, or (05) lessee. In all general Insurance contracts, other than Marine, the insurable interest must be present both at the time of taking out the Policy and also at the time of loss. That is to say the insurable interest must prevail throughout the currency of the Policy. In marine Insurance, the insurable interest must exist at the time of loss.
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The interest an individual or company has in an insured item that would cause him or her financial harm if a loss were to occur.
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The potential for financial loss associated with damage or destruction of property. It is the principle of insurance interest that keeps insurance from becoming gambling. Most carriers require an insured to have insurable interest in the property before agreeing to provide coverage.