§ 26.1-29-04 — Insurable interest defined and classified

An insurable interest is an interest in property, or any relation thereto, or liability in respect
thereof, of such a nature that a contemplated peril might damnify directly the insured, and may
consist in:
1. An existing interest;
2. An inchoate interest founded on an existing interest; or
3. An expectancy coupled with an existing interest in that out of which the expectancy
arises.