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Abstract

Insurable Interest has not been dealt with by the Jordanian Civil Law in the course of regulating insurance contracts. In life insurance contracts, the “Insurable Interest” represents the “Benefit” that the “Beneficiary” receives once “Insured Risk” has taken place. As such, “Insurable Interest” becomes a standard in differentiating between gambling and a legitimate contract. Further, it must exist at the time of contract conclusion and remains throughout its implementation. As with some comparative laws, the Civil Code of Jordan contains some forms of protecting the interest in life insurance contracts, such as depriving the beneficiary from the insurance proceeds, if the beneficiary has caused the death of the insured. It can be generally said that “Insurable Interest” is a condition in the insurance contract despite the fact that nothing has been clearly said in the law in this context and meaning. Yet, it is disputed among jurists whether interest is part of subject matter or consideration or even as an independent contract condition. This research has revealed that “Insurable Interest” is an independent condition. Also, “Insurable Interest” can be non-financial, as in case of an insurance contract made by a father for the benefit of his children. Alternatively, it can be a purely financial one, as in the case of an insurance contract made by a creditor for the benefit of its debtor. Indeed, “Insurable Interest” can be both financial and non-financial. All in all, “Insurable Interest” must be legal. Otherwise, an insurance contract might fall within the scope of illegal gambling. Finally, this research has included some conclusions and findings, most important of which is calling upon the Jordanian legislature to clearly stipulate "Insurable Interest" as part of life insurance contracts.

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