March 2016
Intermediate to advanced
700 pages
144h 54m
English
Content preview from Principles of Risk Management and Insurance, 13th EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Principle of Insurable Interest
The principle of insurable interest is another important legal principle. The principle of insurable interest states that the insured must be in a position to lose financially if a covered loss occurs. For example, you have an insurable interest in your car because you may lose financially if the car is damaged or stolen. You have an insurable interest in your personal property, such as a computer, books, and clothes, because you may lose financially if the property is damaged or destroyed.
Purposes of an Insurable Interest
To be legally enforceable, all insurance contracts must be supported by an insurable interest. Insurance contracts must be supported by an insurable interest for the following reasons.4
To prevent ...
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