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