With regard to using an ILIT, state statutes are generally silent on whether trusts can have an
insurable interest.
The Insurance Law of 2002 required an applicant to have an
insurable interest in the insured subject matter as the prerequisite for an effective insurance contract.
insurance policy is invalidated for lack of
insurable interest, the
Language: The appraiser assumes no liability for the
Insurable Value estimate provided and does not guarantee that any estimate or opinion will result in the subject property being fully insured for any possible loss that may be sustained.
Purpose: The purpose of the
insurable interest requirement is to ensure that a policy does not fall into the forbidden class of "wager contracts," taken out by people who are wholly unrelated to the insured and thus who have a "direct interest in [the insured's] early termination" (Warnock v.
The idea behind the strategy is to make a very difficult-to-insure risk (the financial risk)
insurable by linking it to an exposure that has little or no correlation to it.
They found, surprisingly, that even in their simple model with only three states of nature, in which the default risk and the
insurable risk are independent, optimal coinsurance rate can be equal to, greater than, or less than 1 when insurance is fair.
Consequently, estimates of
insurable values may be misstated.
But multiple sclerosis is not
insurable at the same rates as other health needs.
I do know if I'm doing a movie with him, he's
insurable.
By the close of the 1992 legislative session, the state insurance code had been amended to clearly allow a trust to have an
insurable interest in its insured's lives.
FMV must be distinguished from other types of value such as
insurable value, investment value, property tax value and liquidation value.
