2021 Georgia Code
Title 33 - Insurance
Chapter 24 - Insurance Generally
Article 1 - General Provisions
§ 33-24-4. Insurable Interest; Property Insurance

1. As used in this Code section, the term "insurable interest" means any actual, lawful, and substantial economic interest in the safety or preservation of the subject of the insurance free from loss, destruction, or pecuniary damage or impairment.
2. No insurance contract on property or of any interest therein or arising therefrom shall be enforceable except for the benefit of persons having, at the time of the loss, an insurable interest in the things insured.

(Orig. Code 1863, § 2745; Code 1868, § 2753; Code 1873, § 2795; Code 1882, § 2795; Civil Code 1895, § 2090; Civil Code 1910, § 2472; Code 1933, § 56-812; Code 1933, § 56-2405, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 2019, p. 386, § 24/SB 133; Ga. L. 2020, p. 493, § 33/SB 429.)

The 2019 amendment, effective July 1, 2019, deleted former subsection (c), which read: "The measure of an insurable interest in property is the extent to which the insured might be damnified by loss, injury, or impairment of such interest in such property."

The 2020 amendment, effective July 29, 2020, part of an Act to revise, modernize, and correct the Code, substituted "section, the term 'insurable interest'" for "section, 'insurable interest'" in subsection (a).

- For survey article on domestic relations, see 34 Mercer L. Rev. 113 (1982). For annual survey of insurance law, see 42 Mercer L. Rev. 259 (1990). For comment on American Equitable Assurance Co. v. Pioneer Coop. Fire Ins. Co., 100 R.I. 375, 216 A.2d 139 (1966), as to effect of transfer of insured property to third party absent a clause in the policy prohibiting alienation, see 17 Mercer L. Rev. 483 (1966).

ANALYSIS

• General Consideration
• Parties With Insurable Interest
• Parties Without Insurable Interest
• Policy Provisions
• Practice and Procedure

Leasehold interest coupled with a right or option to purchase or otherwise acquire the leased property upon expiration of the lease agreement is an "insurable interest" which may be protected by the lessee. 1963-65 Op. Att'y Gen. p. 404.

RESEARCH REFERENCES

Am. Jur. 2d.

- 44 Am. Jur. 2d, Insurance, § 933 et seq.

- 44 C.J.S., Insurance, § 317 et seq.

- Insurance: effect of violation of warranty or condition of sole and unconditional ownership as regards one or more of several items of property covered by policy, 5 A.L.R. 808.

Right of reinsurer to question the insurable interest or eligibility of beneficiary, 18 A.L.R. 1163.

Insurance: effect of provision declaring loss, in case of mortgagee's interest, subject to all the terms and conditions of the policy, 19 A.L.R. 1449; 56 A.L.R. 850.

Insurable interest in landlord in crops raised by tenant, or in chattels or fixtures placed on the premises by the latter, 45 A.L.R. 863.

Tenant by entirety as sole and unconditional owner within insurance policy, 48 A.L.R. 353.

Levy of process, or seizure and possession of officer thereunder, as change of interest, title, or possession, avoiding insurance policy, 48 A.L.R. 1021.

Divorce decree as effecting a change of ownership or interest within policy of insurance, 48 A.L.R. 1232.

Reacquisition or extinguishment of title or interest as affecting provision in fire insurance policy against change of title, interest, or possession, or against encumbrance, 52 A.L.R. 843.

Right in proceeds of insurance taken out by warehouseman on goods stored, 53 A.L.R. 1409.

Vendee or vendor under executory contract as having exclusive ownership or interest, within the meaning of condition in insurance policy requiring interest of insured to be that of "unconditional and sole ownership," or the like, 60 A.L.R. 11.

Condition vendor or vendee of personal property as sole and unconditional owner within an insurance policy, 61 A.L.R. 661.

Voidability of deed to insured as affecting his status as sole and unconditional owner, 64 A.L.R. 757.

Insurable interest of husband or wife in other's property, 68 A.L.R. 362; 27 A.L.R.2d 1059.

Extent of recovery by insured who has only a partial or limited interest in the insured property, 68 A.L.R. 1344.

Property insurance taken out by, or endorsed to, receiver in bankruptcy or trustee in bankruptcy, 74 A.L.R. 1347.

Right of mortgagee to benefit of insurance taken out by, or in name of, receiver, trustee, or assignee for creditors of own of equity of redemption, 94 A.L.R. 1387.

Default on part of vendee in land contract as change in title, interest, or possession within provision of insurance policy in that regard, 97 A.L.R. 769.

Insurer's right of subrogation to mortgagee where it is not liable to mortgagor as subordinate to mortgagee's right as regards amount of mortgage debt remaining unpaid after application of proceeds of insurance, 106 A.L.R. 679.

Validity of insurance property possessed in violation of law or used for unlawful purpose, 132 A.L.R. 125.

Mortgagee's knowledge or acceptance of mortgagee clause before loss, as condition of his right to benefit of it, 132 A.L.R. 355.

Conditional sale as affecting provision in insurance policy against change of title, interest, or possession, 133 A.L.R. 785.

Fire insurance: sole and unconditional ownership provision as applicable where insured's title is defective, but in itself subject to no inherent limitation or condition affecting his exclusive ownership, 133 A.L.R. 1344.

Waiver or estoppel regarding sole and unconditional ownership clause, where both insurer and insured are aware of the uncertainty as to the title, 140 A.L.R. 1235.

Insurable interest predicated upon invalid or unenforceable contract, 9 A.L.R.2d 181.

Validity and construction of provision of automobile policy against encumbrances, 16 A.L.R.2d 736.

Condemnation proceedings as affecting insurable interest of property owner, 29 A.L.R.2d 888.