A party who would sustain a financial loss from the destruction of property has an insurable interest in it.

Question

Quizplus · Accepted Answer

It is a basic principle of insurance that an insurable interest must exist in the subject matter of the policy. If there is no insurable interest, the insurance is considered void. Therefore, a party that would suffer a financial loss from the destruction of property has an insurable interest in it.

A Party Who Would Sustain a Financial Loss from the Destruction