What is an Insurable Interest?

The video tutorial explains the concept of insurable interest, a key requirement for most insurance contracts. It describes how a person seeking coverage must suffer identifiable harm from a specific occurrence to have an insurable interest. The tutorial also discusses insurable interest in property and professional relationships, highlighting the need for ownership or potential harm. It touches on alternative contractual relationships that resemble insurance but do not require insurable interest, using credit default swaps as an example. The video concludes by emphasizing the necessity of insurable interest in traditional insurance contexts.

What must a person seeking coverage for a contingent event demonstrate?

Discuss the implications of not having an insurable interest in alternative contractual relationships.