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What does insurable interest mean?
Insurable interest is a fundamental concept in the insurance industry that refers to the legal right an individual or entity has to obtain insurance coverage for an asset or risk. Essentially, it is the financial or emotional stake that one has in the well-being or protection of an object, person, or event. Without insurable interest, insurance policies would be considered void, as they would lack the necessary connection between the insured and the insured item. This article aims to delve into the concept of insurable interest, its importance, and how it affects insurance policies.
In the next section, we will explore the definition of insurable interest and its significance in the insurance world.
