The purpose of this Article is to critically reassess the insurable interest requirement in life insurance coverage disputes in light of the present needs of contemporary American society, including analysis of: (1) legal interpretations and underlying public policy rationales supporting such an insurable interest; (2) who is legally entitled to an insurable interest in the life of another; (3) when an insurable interest must exist; (4) when an insurable interest is-or should be-extinguished; (5) who may challenge the lack of an insurable interest; (6) whether an insurable interest in life insurance is subject to waiver or estoppel defenses; and (7) whether or not an applicant for life insurance should be informed of this insurable interest requirement. The Author will also present a number of recommendations impacting present-day life insurance law and practice, and further advocate for a number of long-needed changes in business-related life insurance, including the requirement that an insurable interest in another's life be present both at the time of the policy inception and at the time of his or her death.
Peter Nash Swisher, The Insurable Interest Requirement For Life Insurance: A Critical Reassessment, 53 Drake L. Rev. 477 (2005), reprinted in 55 Defense L.J. 527 (2006), reprinted in 5 ICFAI J. of Insurance L. 41 (2007) [Institute of Chartered Financial Analysts of India]. Insurance Binders Revisited, 39 Tort Trial & Ins. Prac. L.J. 1011 (2004).