insurable interest

noun

law a financial or other interest in the life or property covered by an insurance contract, without which the contract cannot be enforced

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A partner who has advanced the capital of the business has an insurable interest in the life of his partner.

An assignment to one who has an insurable interest as relative, creditor and the like, is always valid.

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.

Insurable interest can only be described, it cannot exactly be defined.

But the interest might have made the voyage in the vessel, and the intending insured might yet remain without insurable interest.

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