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HAWAII - Insurable Interest Laws

As of August 1, 2007
Most recent legislation changes:  April 20, 2005

§ 431:10-202.  Definitions.

For purposes of this part:

"Insurable interest" includes only interests as follows:

      (1) In the case of individuals related closely by blood or by law, a substantial interest engendered by love and affection.

      (2) In the case of other persons, a lawful and substantial economic interest in having the life, health or bodily safety of the individual insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement, or injury of the individual insured.

      (3) An individual party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a close corporation or of an interest in such shares, has an insurable interest in the life of each individual party to the contract and for the purposes of the contract only, in addition to any insurable interest which may otherwise exist as to the life of the individual.

      (4) A charitable organization as defined in section 467B-1 has an insurable interest in the life of each proposed insured who joins with said organization in applying for a life insurance policy naming said organization as owner and irrevocable beneficiary.

"Policy" means the written instrument in which a contract of insurance and any endorsement or addendum thereto is set forth.
 

This information does not constitute legal advice by the Insurance Barometer LLC and should not be relied upon as such. Every effort has been made to provide correct and accurate information but the reader should verify state laws prior to implementing an insurance program.