United States Fidelity and Guaranty Co. v. Reagan

It is a fixed rule of insurance law that an insurable interest on the part of the person taking out the policy is essential to the validity and enforceability of the insurance contract, whatever the subject matter of the policy, and that if no insurable interest exists, the contract is void. Trinity College v. Ins. Co., 113 N.C. 244, 18 S.E. 175; Wharton v. Ins. Co., 206 N.C. 254; 173 S.E. 338; 29 Am. Jur., Insurance, § 433, where cases are cited to this effect from many jurisdictions. 44 C.J.S., Insurance, § 175.