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- Alaska Statutes.
- Title 21. Insurance
- Chapter 42. The Insurance Contract
- Section 20. Insurable Interest: Life, Annuity, or Health.
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. Insurable Interest: Property.
AS 21.42.020. Insurable Interest: Life, Annuity, or Health.
- (a) A person of competent legal capacity may procure or effect an insurance contract on the life or body of the person for
the benefit of any person. A person may not procure or cause to be procured an insurance contract upon the life or
body of another person unless the benefits under the contract are payable to the individual insured, the personal
representatives of the individual insured, or to a person having, at the time the contract was made, an insurable
interest in the individual insured.
- (b) If the beneficiary, assignee, or other payee under a contract made in violation of this section receives from the
insurer any benefits from the contract upon the death, disablement, or injury of the person insured, the person insured
or the executor or administrator of the person insured may maintain an action to recover the benefits from the person
- (c) Notwithstanding the other provisions of this section, a charitable organization may obtain, by procurement,
assignment, or otherwise, life or health insurance on an insured who consents to the issuance of the insurance. In this
subsection, "charitable organization" means a charity that is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal
- (d) "Insurable interest," with reference to life, annuity, or health insurance, includes only the following interests:
- (1) in the case of persons related closely by blood or by law, a substantial interest engendered by love and affection;
- (2) in the case of persons other than those described in (1) of this subsection, a lawful and substantial economic
interest in having the life, health, or bodily safety of the person insured continue, as distinguished from an interest
that would arise only by, or would be enhanced in value by, the death, disablement, or injury of the individual
- (3) an individual party to a contract or option for the purchase or sale of an interest in a business partnership or firm,
or of shares of stock of a closed corporation or of an interest in the shares, has an insurable interest in the life of
each individual party to the contract for the purposes of the contract only, in addition to an insurable interest that
may otherwise exist as to the life of the individual.
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