Insurable interest

DEFINITION

The legal right to insure arising out of a financial relationship recognised at law. 

SUBJECT MATTER:

1. Subject matter of insurance: the item insured.

2. Subject matter of the contract: the financial interest a person has in the subject-matter

LEGAL RELATIONSHIP: 

Between the insured and the subject matter. 

FINANCIAL VALUE:

-must have financial value (look below for further detail)

INSURER'S INSURABLE INTEREST:

-Insurers share risks with other insurers. 

TIMING OF INSURABLE INTEREST

When must insurable interest start? Depends on…