insurable interest

Defined in 5 dictionaries — Case Law, Cyclopedic (1922), Ballentine's (1916), Bouvier (1914), Black's (1910)

Definitions from Case Law

From 72 U.S. 509 - Insurance Company v. Chase · 1866Most cited · 66 citing opinions

A trustee, therefore, having the right, is justified in insuring the property, even to its full value, although there is no obligation on him, in the absence of express directions, to insure at all.

Show all 2 Supreme Court definitions and how they changed over time 1828–1866

The Cyclopedic Law Dictionary

Walter A. Shumaker and George Foster Longsdorf; ed. James C. Cahill · 1922

Such an interest in a subject of insurance as will entitle the person possessing it to obtain insurance. In the law of fire insurance, an insurable interest may be defined as such an interest as would entail a pecuniary loss were the, property destroyed. 62 N. Y. 47. In the law of life insurance, an insurable interest in the life of another is such a relation that the death of such person would entail pecuniary loss. Any relationship resulting in dependence, or giving a right to service or support, gives an insurable interest to the person benefited. 12 Mass. 115; 57 Vt. 496; 66 Mo. 63. A creditor has an insurable interest in the life of his debtor. 23 Conn. 244.

Ballentine's Law Dictionary

James A. Ballentine · 1916

Any interest in property which would be recognized in a court of law or equity. See 31 Iowa, 464, 7 Am. Rep. 160.

Bouvier's Law Dictionary and Concise Encyclopedia

John Bouvier; revised by Francis Rawle · 1914

Such an interest in a subject of insurance as will entitle the person possessing it to obtain insurance. I It is essential to the contract of insurance, I as distinguished from a wager, that the assured should have a legally recognizable interest In the insured.subject, the pecuniary value of which may be appreciated and computed or valued. An earlier examination of the subject, as connected with life insurance, results in the conclusion from the authorities, that at common law that contract was not one of indemnity, and wagering policies were not unlawful, and therefore that logically, in such policies, an insurable interest should not be reciuired, but that the American courts adopted what has been termed a rule of American common law that all wagers were void on grounds of public policy and, therefore, that there must be an insurable interest; 85 Am. L. Reg. N. S. 65. This rule, it was said, obtains in all the states except New Jersey and Rhode Island; Trenton Mut. Life & Fire Ins. Co. v. Johnson, 24 N. J. L. 576; Mowry v. Home Life Ins. Co., 9 R. I. 354; and see Clark v. Allen, 11 R. I. 439, 23 Am. Rep. 496. Absence of an Insurable interest Is always a defense for the insurer even though there is an Incontestlble clause; Bromleys’ Adm’r V. Life Ins. Co., 122 Ky. 402, 92 S. W. 17, 6

Black's Law Dictionary

Henry Campbell Black, M.A. · 1910

Such a real and substantial interest in specific property as will sustain a contract to indemnify the person interested against its loss. Mutual F. Ins. Co. v. Wagner (Pa.) 7 Atl. 104; Insurance Co. v. Brooks, 131 Ala. 614, 30 South. 876; Berry v. Insurance Co., 132 N. Y. 49, 30 N. E. 254, 28 Am. St Rep. 548; Strong v. Insurance Co., 10 Pick. (Mass.) 43, 20 Am. Dec. 507; Insurance Co. v. Winsmore, 124 Pa. 61, 16 Atl. 516. If the assured had no real interest, the contract would be a mere wager policy. Every interest in property or any relation thereto or liability in respect thereof, of such a nature that a contemplated peril might directly damnify the insured, is an insurable interest Civil Code, Cal. § 2546. In the case of life insurance, a reasonable expectation of pecuniary benefit from the continued life of another; a reasonable ground, founded upon the relation of the parties to each other, either pecuniary or of blood or affinity, to expect some benefit or advantage from the continuance of the life of the assured. Insurance Co. v. Schaefer, 94 U. S. 460, 24 L. Ed. 251; Warnock v. Davis, 104 U. S. 779, 26 In Ed. 924; Rombach v. Insurance Ch, 35 La. Ann. 234, 48 Am. Rep. 239.