insurable interest
- 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
- In order to take out a policy on his parents’ house, he had to prove his insurable interest.
- The young entrepreneur couldn't go ahead with the insurance policy because he lacked an insurable interest.
- 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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