Insurable Interest
Expectation of a monetary loss that can be covered by insurance. Insurable interest varies according to the type of policy. These relationships give rise to insurable interest:
- owner of the property;
- vendor (to the extent of the unpaid balance due on the property sold to the vendee);
- vendee;
- bailee (to the extent of the value of the property under his or her temporary care, custody, and control);
- bailor;
- life estates;
- fee simple estates;
- mortgagee (to the extent of the unpaid balance due on the loan to which the property is pledged as security);
- mortgagor.
Popular Insurance Terms
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In insurance, legal authority obtained by an insurance company, agent, broker, or consultant that permits them to do business in a particular state. The document issued by the state shows ...
Period when the accumulated assets in an annuity are returned to the annuitant. An annuity may be purchased either with a single payment or with many payments over the life of the contract. ...
Total estimated cost incurred by a person or persons, a family, or a business resulting from the death or disability of a wage earner (key employee), damage or destruction of property, ...
Same as term Accounts Receivable Insurance: coverage when business records are destroyed by an insured peril and the business cannot collect money owed. The policy covers these ...
Program instituted by the Small Business Administration (SBA) that guarantees a construction contract bond in the event the issuing surety company suffers a loss. This is an effort by the ...
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