Chapter 4 Insurable Intersest Flashcards
The definition of insurable interest?
The legal right to insure arising out of a financial contract recognised at law, between the insured and the subject matter of insurance.
Three main features of Insurable interest:
Subject matter (Insurance and contract), Legal Relationship and Financial Value.
When must insurable interest begin in life insurance?
It must exist at inception.
When must insurable interest begin in marine insurance?
Must exist when a claim is made.
When must insurable interest begin in general insurance?
Both at the point of inception and at the time claim.
How can insurable interest arise?
Common law, under contract and under statue.
How does insurable interest arise in property owners?
Through ownership of the building.
How does insurable interest arise in liability policies?
Through the legal damages that may be awarded in court in the result of a claim.
