Answer to Question #173984 in Management for sio

Question

Do the following cases have an insurable interest? If so, state their capacity (for example: owner) and when insurable interest is needed for each: 

i. A buyer wishing to insure a consignment of electrical appliances to be shipped from the US.

ii. A bank wishing to insure a mortgagor’s (housing loan debtor) life. 

Answer 1

(i) In the first case, there is insurable interest upone damage or loss of the consignment.

(ii) In the second case, the interest is insurable upone death or loss of life.