The right to insure the goods against any risk exposure such as damage or destruction is known as an insurable interest.

Question

Quizplus · Accepted Answer

An insurable interest is the legal right to insure the goods against any risk exposure such as damage or destruction. This right can be held by the owner of the goods or by someone who would suffer a financial loss if the goods were damaged or destroyed. Without an insurable interest, a person cannot legally purchase insurance for the goods.

The Right to Insure the Goods Against Any Risk Exposure