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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

insurable interest  

Definition 1.

The beneficiary who would suffer loss if the event insured against occurs; without an insurable interest, an insurance company will not issue a policy.
 

Definition 2.

insurance term referring to the relationship between a policy's insured person or property and the potential beneficiary. The beneficiary must have an insurable interest in the insured person or property to receive payment of the policy if the insured died while the policy was in force.
 
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