insurable interest Synonyms
No Synonyms and anytonyms found
insurable interest Meaning
insurable interest (n)
an interest in a person or thing that will support the issuance of an insurance policy; an interest in the survival of the insured or in the preservation of the thing that is insured
insurable interest Sentence Examples
- To be insurable, the policyholder must have an insurable interest in the insured property.
- An insurable interest is a legal or equitable right in property that may be diminished in value by the occurrence of a specified peril.
- The owner of a property has an insurable interest because they have a financial stake in the well-being of that property.
- A creditor who holds a security interest in a property may have an insurable interest in that property to the extent of the debt owed.
- A lessee who has a leasehold interest in a property may have an insurable interest in that property for the duration of the lease.
- Insurable interest is important because it ensures that the policyholder has a genuine need for the insurance and is not taking out a policy for speculative purposes.
- Without an insurable interest, the insurance policy is considered a wagering contract and is unenforceable.
- Determining insurable interest can be complex, especially in cases where there are multiple parties with potential claims to the property.
- Insurance companies carefully assess insurable interest before issuing a policy to ensure they are not exposed to excessive risk.
- Insurable interest is a fundamental principle of insurance law that helps to prevent fraud and protect policyholders.
FAQs About the word insurable interest
an interest in a person or thing that will support the issuance of an insurance policy; an interest in the survival of the insured or in the preservation of the
No synonyms found.
No antonyms found.
To be insurable, the policyholder must have an insurable interest in the insured property.
An insurable interest is a legal or equitable right in property that may be diminished in value by the occurrence of a specified peril.
The owner of a property has an insurable interest because they have a financial stake in the well-being of that property.
A creditor who holds a security interest in a property may have an insurable interest in that property to the extent of the debt owed.
