In life insurance, an insurable interest is requisite, but this interest, if existing at the time the policy is issued, is sufficient, although such interest subsequently terminates.
When there is no insurable interest or when the indemnity is greater than the loss that may be incurred, the beneficiary may and sometimes does find it to his interest to bring about the socially injurious event insured against.
To ascertain insurable value take the cost of buildings at the contract price, including all charges which would have to be incurred again for rebuilding; furniture at the contract price; lending library books at 3s.
In case of life insurance policies, if there is an insurable interest at the time the insurance contract is made, the policy is valid, even though the insurable interest afterwards ceases.
A parent, however, has an insurable interest in the life of his child or wife; or a granddaughter in the life of her grandfather if she depends upon him for her support.
Such an interest is known in law as an insurable interest.
Some things have been decided by the courts to constitute an insurable interest.
In case of loss, the original party insured still holds the property insured or the insurable interest, and any breach of the insurance contract on his part avoids the contract.
Insurable interest can only be described, it cannot exactly be defined.
This interest is called insurable interest and is discussed under a separate section.
Any relationship, either by blood or marriage, close enough to make it of pecuniary advantage to the party taking the insurance to have the insured continue to live, is regarded sufficient to constitute an insurable interest.
The question of insurable interest arises only in case one endeavors to insure the life of another, or the property of another in which one has only a slight interest.
The mutual legal rights and liabilities of father and minor child are sufficient to create an insurableinterest on the part of each in the life of the other; also the relationship of brother and sister, and that of husband and wife.
Likewise a man and a woman who are engaged to be married; and a creditor has an insurable interest in the life of his debtor.
The contract to be valid must be for the benefit of one having an insurable interest, otherwise the contract is a wager, which the law condemns.
An assignment to one who has an insurable interest as relative, creditor and the like, is always valid.
A policy may be assigned to one who has no insurable interest if made in good faith, and not as a cloak for the procuring of insurance by one having no insurable interest.
A partner who has advanced the capital of the business has an insurable interest in the life of his partner.
A surety therefore has an insurable interest in the life of his principal; an executor in the life of a person who has granted an annuity to the testator; a common carrier even may insure against loss from injuries to passengers.
Where the object is insured for less than the insurable value, as defined above, the insured is deemed to be his own underwriter for the balance.
But the interest might have made the voyage in the vessel, and the intending insured might yet remain without insurable interest.
The values of objects insured under open or unvalued policies are the insurable values given above.
Fire companies, while anxious to issue policies on every insurable house, are more than willing that their business rivals should do the same, as in the event of fire the burden of loss will not be borne by one.
Stannard's remark about his insurable interest indicated that he had weighed the plan before, and Jimmy thought his pause significant.
It was now to be resolved whether, under any form or by any subtlety of argument, the statute which said so distinctly an insurable interest was necessary, could be broken through.
The interest which the plaintiffs had in the life of Mr. Pitt was that of creditors, a description of interest which was held to be aninsurable one.
Charles Genevieve Louise Auguste d’Eon de Beaumont, popularly known as the Chevalier d’Eon, was the cause of a trial before Lord Mansfield, as to the validity of a policy without an insurable interest.
All this gave no clue to an insurable interest, and when he was asked what reason there was to believe in her great possessions, he pointed to her gay dress, and expatiated on her rich jewellery.
After the payment of two years’ premium the son died, and the office refused to honour the policy, because the father had noinsurable interest in the life of his son.
The above list will hopefully give you a few useful examples demonstrating the appropriate usage of "insurable" in a variety of sentences. We hope that you will now be able to make sentences using this word.
