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Investments glossary

Insurable Interest


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Drugs are not always necessary, but belief in recovery always is.

— Norman Cousins

A person or entity has an insurable interest in an item, event or action when the damage or loss of the object would cause a financial loss or other hardships. To have an insurable interest a person or entity would take out an insurance policy protecting the person, item or event in question. The insurance policy mitigates the risk of loss should something beset the asset.

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