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Does Lack Of An Insurable Interest Preclude An Insurance Agent From Taking An Absolute Assignment Of His Client's Life Policy?, Johnny C. Parker

University of Richmond Law Review

To understand any concept it helps to know the purposes it serves and the objectives it seeks to achieve. The maxim that one "must have an insurable interest in the life or property insured" has haunted insurance law for centuries. This doctrine conditions both the validity and enforceability of insurance contracts upon the existence of an insurable interest in the person who purchases the policy. The considerations which underlie the insurable interest requirement are generally expressed in terms of public policy: (1) against allowing wagering contracts; (2) against fostering temptation to destroy the insured property or life in an effort …