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.

A term often used to describe investment bonds. They contain an insurance element and are single premium policies issued by insurance companies.

A full-time intermediary offering a service on the basis of professional expertise and competence. The broker offers advice and arranges the insurance normally as agent for the insured but is usually remunerated by a commission from the insurer. From January 2005, insurance brokers will be regulated by the FSA.
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An individual or firm that acts as agent for an individual, body or firm in arranging insurance cover and in presenting claims under such cover. At present only Lloyd’s brokers may arrange cover directly with or on behalf of underwriters in the underwriting room.

(qv) rules relating to the conduct of insurance business. The FSMA empowers the FSA to make rules prohibiting an authorised person, who has permission to effect or carry out contracts of insurance, from carrying on a specified activity. Another rule empowers the FSA to make rules in relation to contracts entered into in the course of carrying on long-term insurance business particularly in regard to linked-policies (s.141(4)). It means that where the FSA has determined that a particular index is no longer permissible it can stop new policies being linked to that index. It can also require that existing linked policies should substitute a new index for the prohibited one.

Insurance suppliers incorporated under the Companies Act. This includes: 1. Proprietary companies, i.e. limited liability companies generally constituted under the Companies Act with a subscribed share capital. The shareholders have the ultimate rights to the profits, but in the case of a life insurance company provision has to be made for a share of the profits to go to ‘with profits’ policyholders. 2. Mutual companies. These are notionally owned by the policy holders who share in the distributable profits in proportion to the sums assured and conditions of their policies. Such companies have been common in life insurance but some have demutualised.

Provisions that state the insured person under a legal expenses policy has the right to choose his own solicitor. The regulations also deal with the conflict of interest that would arise if the legal expenses insurer acting for the claimant was also the liability insurer for the defendant sued by that claimant.

Three generations of both life and non-life directives The first directives paved the way for any insurer authorised in any Member State to set up a branch, agency or establishment in any other EC state, without restriction by the host, subject only to the host’s regulatory requirements, now largely harmonised. The second generation created free movement of insurance services within the EC by abolition of restrictions to sell across national boundaries. The third generation completed the move towards a single insurance market by abolishing the right of a host nation to insist upon authorising insurers established in other Member States. Authorisation in one state became a Single European Licence, allowing an insurer, without authorisation from any other state: (a) to establish elsewhere; and (b) to sell into other states from establishments outside those states. Post-authorisation regulation is carried out by the insurer’s home state to complete the twin aims of single licence and home country control. See FOURTH MOTOR INSURANCE DIRECTIVE.

Previous insurance record of the insured or proposer. Unsatisfactory insurance history is material (utmost good faith) and must be disclosed to the insurer. Where proposal forms are used, it is customary for the insurer to include questions about present insurances; previous declinatures; imposition of special terms or increased premiums by previous insurers; refusals to renew; cancellations.

Firms carrying on an insurance mediation activity including an insurer, for example when it advises on or arranges its own noninvestment insurance contracts or those of another insurer through its own sales force. See INSURANCE: CONDUCT OF BUSINESS RULES.