- Without insurable interest a contract of insurance or life assurance is void.
- The Life Assurance Act 1774 does not indicate what type of interest is required but subsequent case law and statutes have established four categories.
- Natural affection is one category and enables an individual to insure his/her own life, or the life of his/her spouse.
- Decided cases have established that the interest only has to exist at the inception of the contract and not at the time of loss.
- The Law Commission of England & Wales and the Scottish Law Commission have been asked to simplify and reform the law relating to insurable interest.