26.1-29-04. Insurable interest defined and classified

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.