Life & Health · Chapter 3 · Contract Law
Insurable Interest
Definition
A financial/economic interest in the subject of insurance — you would suffer a real loss if it were harmed. Required for legally enforceable coverage.
Exam tip
Life/Health: required only at application (not at claim). Property: required at application AND at the time of loss.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms