Purchaser's Insurable Interest in Stolen Property, 68 VA.
contracts as those lacking insurable interest, and thus not
After the accident Prime One eventually declined coverage because it asserted that Petro Mart did not have an insurable interest in the gas pumps, as Bazzi--not Petro Mart--owned the pumps.
Instead, an insurable interest can arise from any kind of benefit from the thing so insured or any kind of loss that would be suffered by its damage or destruction.
With regard to using an ILIT, state statutes are generally silent on whether trusts can have an insurable interest.
Some state statutes provide that a trustee has an insurable interest in the life of the trust's grantor.
interest: This is one of the six general insurance principles.
The first category includes articles pertaining to the (1) insurable
interest, (2) applicants' duty to disclose misrepresentations, (3) interpretation of the policy, (4) timely notice of increased risks, (5) insurance fraud, and (6) double insurance.
lack an insurable
interest and are thus an illegal wager on human life.
Likewise, do not confuse charitable gifts of life insurance with "stranger-originated life insurance" involving the questionable use of a charity's insurable
interest to promote a speculative life insurance arrangement (see discussion on page 549).
In order to understand why SPIN-Life policies violate insurable
interest laws and should not qualify as life insurance contracts, it is necessary to consider the fundamentals of insurance in general.
Law [section] 3205(b)(1) expressly allows an individual to procure and immediately transfer or assign to another a policy on his own life, irrespective of the existence of an insurable
interest in the assignee [a position upheld by Hota v.