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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Payment of premiums and benefits as they come due. In pension plans, known as the "pay as you go basis." The plan depends on new employees coming into the work force so that their ...
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