When does insurable interest end?

GM228

Following a posting in another thread I'm curious when an insurable interest ends with regards a married couple, my understanding is it only ends if actually divirced/annulled, but when living apart/seperated there's still an insurable interest.

Victor

It might live beyond a divorce, e.g. one party might still be financially dependent on the other and the death of the insured might be a substantial financial loss.

I imagine insurers have policies that foresee such issues. The might not pay out on murder.

NUTLEY BOY

As per Victor's observation, divorce of itself may not terminate insurable interest.

Insurable interest arises and runs in a wide variety of ways. The policyholders relationship to the subject matter of the insurance would be relevant to the issue of whether or not insurable interest persists after any given change of circumstances or facts.

It is possible to have valid insurable interest at the inception of a policy but for that interest to terminate subsequently because of changes in circumstances i.e. just because it was there at inception that does not mean that it exists until expiry of the policy or the operation of an insured peril be it death, fire or whatever.

GerardKeating

GM228 wrote: »

Following a posting in another thread I'm curious when an insurable interest ends with regards a married couple, my understanding is it only ends if actually divirced/annulled, but when living apart/seperated there's still an insurable interest.

My fogged memory tells me that for life policies, the insurable interest only had to exist when the policy was taken out, and at any renewal.