Insurable Interest is a fundamental principle in the insurance industry, signifying that the person purchasing the insurance policy must have a legitimate and genuine stake in the well-being or continued existence of the subject being insured.
"Insurable Interest" is a fundamental principle in the insurance industry, signifying that the person purchasing the insurance policy must have a legitimate and genuine stake in the well-being or continued existence of the subject being insured.
In simpler terms, the policyholder should stand to suffer a direct financial or emotional loss if the insured event occurs. This concept ensures that insurance exists for the genuine transfer of risk and protection against potential loss, rather than as a speculative or profit-making venture.
For individuals, insurable interest is most evident in life and property insurance. In life insurance, for example, one typically has an insurable interest in close family members, meaning that their death would result in a financial or emotional loss.
Insurable Interest is a fundamental principle in the insurance industry, signifying that the person purchasing the insurance policy must have a legitimate and genuine stake in the well-being or continued existence of the subject being insured.
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