IF1 - Chapter 4 - Insurable Interest
Under what circumstances can insurable interest occur?
1. Common law (ownership) 2. By a contract 3. By Statute
When must insurable interest exist in general insurance contracts ?
At inception and at the time of loss
What is it meant by insurable interest under statute?
Parliamentary acts that grant someone a insurable interest
Who has an insurable interest in property?
Part/joint owners, Agents, Bailees and Tenants
What is a Bailee?
Someone holding a property on a temporary basis on behalf of the legal owner
What is the subject matter of the contract ?
The financial interest in the subject matter
What is the subject matter of insurance?
The item/event insured
What is insurable interest?
The legal right to insure arising out of a financial relationship recognized at law, between the insured and the subject matter of insurance
When must an insurable interest occur in a marine contract ?
To be present at the time of loss but no at inception
When must there be insurable interest in a life assurance policy
at inception