insurable interest

Definition

The beneficiary who would suffer loss if the event insured against occurs; without an insurable interest, an insurance company will not issue a policy.

Use insurable interest in a sentence

The insurable interest was recognized, as the accidental event could occur at any moment, so we had to be prepared.

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The IRS is cracking down on some of the more absurd claims of insurable interest, such as dentists insuring against terrorist attacks in their practice.

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In order for insurance providers to issue policies, there must be an identifiable insurable interest present, through which the beneficiary, or client, is protected from a loss.

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insurability interest