Insurable Interest Research

Insurable Interest is the core concept in insurance system. The concept ofinsurable interest did not appear with the insurance system at the same time, butappeared and have been developing upon the necessity to realize the function of theinsurance system. To understand the concept of interest from the economics point ofview, it is the satisfaction to certain kind of demand or the benefit from certain kindof deed. The interest of the Insurable Interest mentioned in this paper refer to onekind of object which exists in impersonality, can be as insurance object, can realizeseveral function of insurance system such as indemnifying against a loss, sharingrisks inside the group by majority principle. It is also embodied as a kind ofadvantage and disadvantage relation between the policy-holder or the insured and thesubject matter of the insurance.Due to the most complexity of the produce and variety of this special relationbetween the person and the person, and between the person and the object, such asrelation engendered upon the law (such as ownership), relation engendered upon thenature (such as paternity), relation engendered upon certain kind of disadvantage deed(such as compensation against tort liability), and relation engendered uponambilateral agreement (such as debt and credit relation). There is big differenceamong the legal characters of these relations, and it is very difficult to sum them upwith concise words. Therefore there exists various opinions on the definition of theinsurable interest both in doctrine and in legislation since the appearance of theconcept of the insurable interest. In the first part of the paper, the basis of theInsurable Interest is studied exhaustively. It starts from the definition of the InsurableInterest, analyze the essence characters of the Insurable Interest such as its legalcharacters, social functions. It also reviews the history development of the InsurableInterest Doctrine, make an inquiry into the theory basis and developing trend of theInsurable Interest which is the most fundamental principle of the insurance system.The final conclusion is drawn as: the Insurable Interest shall be a developing andopening concept. Changing the implication of the Insurable Interest from positiveway to negative way will be good to exploit bigger adaptable space of insurancesystem and bring the positive effect of the insurance system into full play. The historydevelopment of the Insurable Interest Doctrine reflects the practical necessityrealizing the basis function of insurance, expressed in the property insurance: theinsurable interest doctrine is developed from one property-one right-one interest tocreate different insurable interest on one property by the technology of the lawbecause of the practical requirement of the enlarging protection scope of theinsurance system, then separates from law concept based on other laws and become aeconomics concept, that is, if has actual relation with certain subject, even withoutlegal ground, as long as there is no violation of public policy, if such relation isdamaged or the relation holder sustain losses against the happening of the insuredaccident, then such relation can be regarded as the insurable interest. For theapplicability of the Insurable Interest in Life insurance contract, the legislate of mostContinental nations refuse it. They deny the meaning of the Insurable Interest torealize the loss recover function in life insurance because the value of person's lifeand body can not be computed. In non-statue nations , the Insurable Interest doctrinein life insurance contract has been developing from pure money interest to thedirection of wider applicable scope and more flexible.The legislate of insurance law shall adapt to the necessity of the practicaldevelopment of the insurance, and shall be perfected with the development of theinsurance business. In our country, the beginning of the commercial insurance is late,therefore the insurance business is not flourishing, which has indirectly thedevelopment of the legislate of insurance law. The second part of the paper studies theinsurable interest legislate cases of the property and life insurance in differentcountries. Through the comparative study in main countries' legislate of insurance law,it sets forth the reasonable and unreasonable rules of different laws, in order toprovide useful reference to the legislate of insurance law in our country.The importance of the Insurable Interest in insurance contract reflects directly inthe following two aspects: First is that it consists of the subject of insurance contract,the type of insurance contract is decided by the type of the Insurable Interest;Secondis that it is the special effective necessity of insurance contract. Who and when hasinsurable interest decides the validity, continuance, and invalid of insurance contract.Moreover, the transfer of insurable interest caused by the transfer of ownership ofinsured property, and the handle of insurance interest itself also decides thecontinuance and termination of insurance contract. The third part of the paper makeanalysis to aspects of insurable interest as insurance contract subject, and validatenecessity of insurance contract, which include legal theory basis analysis to differentkinds of insurable interest, analysis to the holder and time of insurable interest,analysis to different legal result of insurance contract due to the different changingcondition of insurable interest, analysis to two practical expressing ways of insurableinterest limiting the validity of insurance contract, that is, analysis to duplicateinsurance and overvalue insurance. The purpose is to set up the legal theory basisupon which all possible conditions in insurance practical business shall obey.The fourth part sorts out all regulations of current insurance law of our countryrelated to insurable interest one by one. Based on the above mentioned theoryanalysis and legislate study, through analysis to the defects and insufficiency of theseregulations, then set forth my own revising point of view.