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From The Glossary »

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Insurable Interest:

A long-standing principle enshrined in life insurance law is that the person taking out or effecting a life insurance policy should have an "insurable interest" in the person whose life is to be insured. This principle has a long history and was first introduced in England to counter the practice of gambling - mainly by taking out policies on the lives of prominent persons such as a prime minister, with whom the policyholder had no connection whatever ...
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