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.
While it is true that Petro Mart had neither of these interests and was not responsible for the repair of the pumps, these facts, standing alone, do not preclude a finding of an insurable interest.
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.
Loss must be accidental: If a person is involved in an act where loss or damage to the surrounding property is certain or the insured deliberately damages the property, the risk is not insurable.
Any activity or risk that is against public policy is not insurable.
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).
interest is "any lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage.
The purpose of this Bulletin is to remind licensees of the insurable
interest requirement as it pertains to life insurance.
interest requirement dates back to nineteenth-century