What is the Definition of Insurable Interest?
In insurance, a person exhibits an insurable interest in a potential loss if that person will suffer a genuine economic loss if the event insured against occurs. Without the presence of insurable interest, an insurance contract is not formed for a lawful purpose and, thus, is not a valid contract.
Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/
Label: Insurance
Theme: Dictionary of Insurance Terms
Other Questions: What is the definition of Annuity?
What is the Definition of Insurable Interest?
You can find random definition and meaning of insurance terms below:
Meaning of Gun Liability in Insurance Terms
A legal concept that holds gun manufacturers liable for the cost of injuries caused by guns. Several cities have filed lawsuits based on this concept.
Meaning of Hacker Insurance in Insurance Terms
A coverage that protects businesses engaged in electronic commerce from losses caused by hackers.
Meaning of Hard Market in Insurance Terms
A seller’s market in which insurance is expensive and in short supply. (See Property/ casualty insurance cycle)
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