Insurable Interest Defined Sample Clauses

Insurable Interest Defined i. You can insure something, and be indemnified for loss, only if you have an insurable interest in it. [originated in England; can’t use property in which you don’t have an interest as a wagering device] (1) Insurable interest in prop means you derive a benefit from its existence or would suffer a loss from its destruction ii. Requirement of insurable interest before one can obtain benefits under an insurance policy serves 2 main purposes: (1) Elimination of insurance as a vehicle for gambling (2) Removal of temptation provided by a prospect of a net profit through insurance proceeds to deliberately bring about the event insured against. iii. Xxxxxx & Xxxxxx, Inc. x. Xxxxx, SC App. 1993: (1) Anyone has an insurable interest in property who derives a benefit from its existence or would suffer loss from its destruction. An insurable interest in property is any right, benefit, or advantage arising out of or dependent thereon, or any liability in respect thereof, or any relation to or concern therein of such a nature that it might be so affected by the contemplated peril as to directly damnify the insured. (2) An insurable interest doesnt necessarily imply a prop interest in, or lien upon, or possession or, the subject matter of the insurance, and neither the title nor a beneficial interest is requisite to the existence of such an interest (3) It is not necessary to constitute an insurable interest that the event insured against would necessarily subject the insured to loss; it is sufficient that it might do so. (4) A mortgagee of real or personal property has an insurable interest to the extent of the mortgage debt, even after he has assigned the mortgage, if he has guaranteed its payment. The mortgagor retains his insurable interest after selling the property if the mortgagor remains personally liable on the debt. (5) Here, respondent sold a fellerbuncher to a third party, but retained an insurable interest in the fellerbuncher b/c use of the fellerbuncher enabled the third party to make payments to respondent

Insurable Interest Defined. (1) Subject to the provisions of this Act, every person has an insurable interest who is interested in a marine adventure. (2) In particular a person is interested in a marine adventure where he stands in any legal or equitable relation to the adventure or to any insurable property at risk therein, in consequence of which he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss, or by damage thereto, or by the detention thereof, or may incur liability in respect thereof. 8. When interest must attach.— (1) The assured must be interested in the subject-matter insured at the time of the loss, though he need not be interested when the insurance is effected: Provided that, where the subject- (2) Where the assured has no interest at the time of the loss, he cannot acquire interest by any act or election after he is aware of the loss. 9. Defeasible or contingent interest.— (1) A defeasible interest is insurable, as also is a contingent interest. (2) In particular, where the buyer of goods has insured them, he has an insurable interest, notwithstanding that he might, at his election, have rejected the goods, or have treated them as at the seller’s risk, by reason of the latter’s delay in making delivery or otherwise. 10. Partial interest.—A partial interest of any nature is insurable.