Insurable Interest
A legal requirement that the person buying the insurance policy must have a genuine financial or emotional stake in the life or property being insured. Without insurable interest, an insurance contract is not valid. This prevents people from taking out policies on strangers for profit.
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Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.
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