Research On Insurable Interest Rule And Consent Of Insured Rule

This article discusses the applicability of insurable interest in life insurance by five parts. Theoretical Analysis and Comparison Analysis is used to analyze the origins and developments of Insurable Interest Rule and Consent of Insured Rule, and their advantages and disadvantages, which initiates me to apply thought to relative system in our country, and put forward some proposals to the amendment of P.R.C. Insurance Law.The first chapter is about the basic theory of insurable interest. In this part, the concept, the elements, the functions of insurable interest and the differences of the applicability in property insurance and life insurance are discussed. Because of the differences between property insurance and life insurance, it is hard to define and generalize insurable interest well and truly. Thought the comparison of property insurance and life insurance, this article gets to the conclusion that the insurable interest principle will be used in property insurance well ,but, in life insurance, this principle not only hard to be define, but also hard to realize its function.The second and third parts mainly analyze Insurable Interest Rule and Consent of Insured Rule. In common law countries, a life insurance contract will be invalid without insurable interest. The purpose of Insurable Interest Rule is to prevent life insurance from gambling and to guard against moral hazard. Benefit from the legislation and the judicial system, Insurable Interest Rule works smoothly in common law countries without big problem. But actually, the problem that how to define insurable interest and how to get to a balance between gambling and moral hazard prevention and the development of insurance industry is still past the point of solution. In civil law countries, Consent of Insured Rule is adopted instead of Insurable Interest Rule. As a tool of moral hazard prevention, this rule respects the right of the person. As a matter of course, the Consent of Insured Rule is not perfect. Whether the insured's consent is revocable is still a problem to be resolved.The fourth chapter analyzes the limitation of the Insurable Insured Rule in five aspects as follow: how to define insurable interest, how to make the function of insurable interest work, the respect to the insured's rights of the person, when and who should the insurable interest exists in.The fifth chapter is divided into two parts: the first part is about the valuation of the P.R.C. Insurance Law. Apparently, the P.R.C. Insurance Law mixes Insurable Interest Rule and Consent of Insured Rule. But actually, it's a variety of Consent of Insured Rule, which can be a hotbed of moral hazard. Considering that Chinese legal system is more approximated to the civil law system and the limitation of Insurable Interest Rule, it will be better to apply Consent of Insured Rule in China. The second part of this chapter puts forward some proposals to the construction of Consent of Insured Rule in seven aspects as follows: the significance, the character, the owner, the content, the performance, the remedy and the legal consequence of the right to consent.