An insured's lack of an insurable interest is an absolute defense against payment.

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Insurable interest is a requirement for an insurance policy to be valid. It means that the insured must have a financial or other interest in the insured property, such as the risk of loss or damage, to prevent them from intentionally causing a loss to collect the insurance proceeds. If an insured lacks an insurable interest, the insurance policy is deemed void, and the insurer is not obligated to pay any claims. Therefore, lack of insurable interest is an absolute defense against payment.

An Insured's Lack of an Insurable Interest Is an Absolute