IS INSURABLE INTEREST APPLICABLE
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
IS INSURABLE INTEREST APPLICABLE
Hi
Is Insurable interest applicable if the Legal Registered Owner of a vehicle that is paid in full, gives the vehicle to another person, his father, who does not reside at the same address.
His Father Insures the vehicle because he uses it daily for the last 6 years but the legal ownership at the license office is never changed.
Can the insurance company reject, the insurance claim, in the vent of a total loss because the father whos policy it is has no insurable interest?
Doesn’t the father have insurable interest since the assess is in his possession and he uses it daily, and would need to replace it if its gone?
Asked on April 8, 2016 under Insurance Law, Alaska
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
No, the father does not have an insurable interest because he is legally not the owner. Use does not give someone an insurable interest: for example, consider a tenant in an apartment building--the apartment is his home, and he lives there everyday; but he cannot insurer the building (only his own belongings) despite his use and his need for the apartment, because he does not own it. It is the same in the situation: neither the father's use nor his need create an insurable interest.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.