Law Commons^™

An Analysis Of Insurable Interest Under Article Two Of The Uniform Commercial Code, John M. Stockton

Vanderbilt Law Review

The basic requisite of an insurable interest pervades all types of insurance contracts.' The reason most commonly given to justify this requirement is that in the absence of such an interest the agreement is no more than a common wager. A second reason is that the absence of an insurable interest might encourage the insured willfully to destroy the property (or life) of the insured. Despite universal recognition of its need, insurable interest is a term of indefinite meaning. This is evidenced by the many opinions in which courts have had difficulty in determining the existence of such an interest. …