insurable interest

Definition of "insurable interest"
  1. The presence of a stake or involvement in a property or individual that is due to the possibility of significant monetary loss resulting from the demise of the individual or damage to the property. This is a necessary condition for enforcing an insurance contract
How to use "insurable interest" in a sentence
  1. In order to take out a policy on his parents’ house, he had to prove his insurable interest.
  2. The young entrepreneur couldn't go ahead with the insurance policy because he lacked an insurable interest.
  3. Because he stood to lose financially if the vehicle was stolen or damaged, his insurable interest enabled him to have it insured.

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