What is ‘Insurable Interest in a Maritime Insurance Policy’
The term “insurable interest” refers to the benefit (or interest) a person has in an insured object (or person – as in a life insurance insurable interest). This benefit can refer to a financial benefit, among others. A person has insurable interest in a thing when he or she would experience some kind of loss (financial or otherwise) if the thing were to be damaged or lost.
Say that you have piece of jewelry in your home that is also a family heirloom. If someone were to steal it (or if you were to drop it down the sink, or in the toilet, or even lose it in the garbage) you would suffer different kinds of loss, both financial and emotional. Thus, you have an insurable interest
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There is no requirement of insurable interest when the contract is made. This section also allows the subject matter of a marine policy to be insured ‘lost or not lost’. This means that it is possible for the insured to recover under a marine policy even if he acquired his interest after the loss has occurred, unless he was aware of the loss and the insurer was not. These rules reflect the practices of marine trade where cargo frequently changes ownership in the course of transit. In this case there is a transfer of rights i.e assignment of interest.
Assignment of Interest may be done by endorsement in blank that is to sign the policy. Alternatively, this can be also done by signing in favor of one other person. In turn, only that person can then claim to be the rightful owner. The law permits this unless the policy states otherwise. However, hull policies prohibit assignment even though the marine act promotes this transfer of rights.
An interesting fact is that companies can have insurable interest in their workers, both in higher ups and in those lower down the ladder. There has been some controversy about this recently, where companies took life insurance policies out on their employees without their employees’ consent. In these instances, the companies collected the policies on their deceased employees, who sometimes did not even work for them anymore.
Of course companies have
“A long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.”
Financial Instruments A financial asset is something which is defined as an entitlement of future cash flows. However, a financial instrument is a broader term used to describe financial assets and other assets in which there are no organised secondary markets to trade them. However, a financial security is something that can be traded in a secondary market. Attributes of Financial Assets Financial assets are those that: • • • • Have a return of yield expressed in terms of percentage. Have risk in which there is probability the actual return will differ from the expected return. Are liquid in that they can be sold at current market prices with reasonable transaction costs. Are expected to have a set time-pattern of cash flows in or out.
“A long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.”
56. The doctrine that applies when one person confers a benefit on another who retains the
(A) if such contract or interest therein has a basis for determining gain or loss in the hands of a transferee determined in whole or in part by reference to such basis of such contract or interest therein in the hands of the transferor,
The crux of this question is whether you have term life insurance or whole life insurance. If you have term life, it is not considered a countable asset because it has no cash value.
[a] conveyance of real property or an interest in real property or a mortgage or deed of trust is void as to a creditor or to a subsequent purchaser for a valuable consideration without notice unless the instrument has been acknowledged, sworn to, or proved and filed for record as required by law.
But what about the the company's perspective? What about the laws passed that protect workers while on the job? One of the authors I came across made a great point:
Life insurance is meant to provide funds to replace a breadwinner's to protect and support dependents. Chad and Haley are dependents, not income providers. Therefore, the purchase of life insurance is unnecessary and not recommended. The Dumonts should use the money they would spend on policies for the children to increase their own coverage.
something is held to deserve; the importance, worth, or usefulness of something (Fears, 2008). Anything
The PPS Act enables an "interested person" to require a secured party (such as FleetPlus) to provide information about its security interest. Examples of "interested person” includes a person with another security interest in the secured property and any execution creditor with an interest in the secured property.
Now, let's talk about the charitable gift annuity. A charitable gift annuity is a simple contract between the donor and the charity. In exchange for the donor's irrevocable gift of cash, securities, or other assets, the charity agrees to pay one or two annuitants that the donor has named a fixed sum each year for life. The payments are backed by the general resources of the charity. The older their designated annuitants are at the time of the gift, the greater the fixed payment charity can agree to pay. In most cases, part of each payment is tax free, increasing each payment after tax value. If the donor gives appreciated property, the donor will pay capital gains tax on only part of the appreciation. In addition, if the donor names themselves as the first or only annuitant, the capital gains tax will be spread over many years rather than all due in the year of their gift.
Long-term liabilities: Note Payable with total balance due in 5 years and Mortgage Loan with payments made monthly over 5 years.
Lowering interest rates is an effective way to stimulate and improve the economy. When rates are lower, it is easier and more affordable to borrow money. This encourages spending and investment, both which help propel the economy forward.
One of these is with regards to goodwill and intangible assets with identifiable useful lives.