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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Retirement plan for an individual based on a single contract with a benefit based on current earnings, as if they will remain static until normal retirement age. As the earnings of the plan ...
Same as term Claims Made Basis: method of determining whether or not coverage is available for a specific claim. If a claim is made during the time period when a liability policy is in ...
Stipulations of the rights and obligations of an insured and an insurer under a policy. ...
Statement showing the amount of money owed the agent by the insurance company, according to the contract he or she has with the insurance company. ...
Coverage for damage or destruction of property with relatively high monetary value, such as stock brokerage house and bank shipments, which involve the transfer of securities and monies to ...
Bond guaranteeing that a contractor will perform under the contract in accordance with all specifications of the bid submitted. ...
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