insurable interest

  • An interest in relation to, or liability with respect to, the subject matter of the insurance, which is of such a nature that damage to the subject matter or injury or damage caused by the subject matter would result in pecuniary loss to the person concerned.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).