New Developments In The Law On Insurable Interest

Law360, New York (August 10, 2009, 10:48 AM EDT) -- Historically, U.S. state insurance laws have required that a life insurance policy may be procured only by a person with an insurable interest in the continuation of the life of the insured. Such persons typically include the insured, the insured’s spouse and the insured’s other close relatives.[1]

State law has consistently condemned, as a wagering contract which violates public policy, the purchase of life insurance by a party whose only interest is in the early death of the insured.

Accordingly, a policy purchased by a party...
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