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Flashcards in 4 Insurable Interest Deck (5)
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What is the subject matter of an insurance contract?

The insured's financial interest in the subject matter of the insurance?


What is the definition of insurable interest?

The legal right to insure arising out of a financial relationship, recognised by law, between the insured and the subject matter of insurance.


When must insurable interest exist in general insurance?

Always at the time of the loss and generally at inception, although reasonable expectation at the inception may be sufficient.


How do insurers insure part of or all of the risk they have assumed under a policy?

By reinsurance


What are the three main ways in which insurable interest may arise?

* Common law
* Under contract
* Under statue