Ki Jeong Han, A Study on the Kinds of Insurable Interest in U.S. law – Focused on Legal Expectations and Factual Expectations.
<Abstract>
This paper examines the problem of legal expectations and factual expectations as kinds of insurable interest in property insurance. The absence of insurable interest in indemnity insurance renders the insurance contract void. Accordingly, the presence of insurable interest is an essential requirement in indemnity insurance since it affects the validity of the insurance contract. The issue of legal expectations and factual expectations is closely related to the presence or absence of insurable interest. It is because its presence or absence depends on whether to limit insurable interest to legal expectations or to include factual expectations. This is not a mere theoretical subject, but a matter of legal disputes between concerned parties that requires deeper study. The types of legal and factual expectations and the extent to which they can be included as part of insurable interest in each of those types are the key points of discussion. Currently, research and cases on this topic are lacking in Korea. Conversely, American Law has accumulated a significant amount of research and cases on this issue. This paper analyzes the problem of legal and factual expectations in property insurance according to American cases and research to draw conclusions on possible implications for Korean Law. The fact that American Law recognizes a broad concept of insurable interest, especially considering legal expectations, can lead to meaningful suggestions for Korea. However, American Law inclines to limit the scope of factual expectations that can be included as insurable interest which seems to be an undesirable direction. It is more advisable to approach the problem of legal and factual expectations as a matter of utility or practicality of insurance. If an economic expectation is direct or substantial and does not constitute a wager, there is a need to accept it as insurable interest, regardless of whether it is legal or factual.
<Keywords>
insurable interest , legal expectations , factual expectations , property insurance , utility of insurance
Ki Jeong Han, A Study on the Kinds of Insurable Interest in U.S. law – Focused on Legal Expectations and Factual Expectations.
<Abstract>
This paper examines the problem of legal expectations and factual expectations as kinds of insurable interest in property insurance. The absence of insurable interest in indemnity insurance renders the insurance contract void. Accordingly, the presence of insurable interest is an essential requirement in indemnity insurance since it affects the validity of the insurance contract. The issue of legal expectations and factual expectations is closely related to the presence or absence of insurable interest. It is because its presence or absence depends on whether to limit insurable interest to legal expectations or to include factual expectations. This is not a mere theoretical subject, but a matter of legal disputes between concerned parties that requires deeper study. The types of legal and factual expectations and the extent to which they can be included as part of insurable interest in each of those types are the key points of discussion. Currently, research and cases on this topic are lacking in Korea. Conversely, American Law has accumulated a significant amount of research and cases on this issue. This paper analyzes the problem of legal and factual expectations in property insurance according to American cases and research to draw conclusions on possible implications for Korean Law. The fact that American Law recognizes a broad concept of insurable interest, especially considering legal expectations, can lead to meaningful suggestions for Korea. However, American Law inclines to limit the scope of factual expectations that can be included as insurable interest which seems to be an undesirable direction. It is more advisable to approach the problem of legal and factual expectations as a matter of utility or practicality of insurance. If an economic expectation is direct or substantial and does not constitute a wager, there is a need to accept it as insurable interest, regardless of whether it is legal or factual.
<Keywords>
insurable interest , legal expectations , factual expectations , property insurance , utility of insurance