Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence of the insured object (or in the context of living persons, their continued survival). A person has an insurable interest in something when loss-of or damage-to that thing would cause the person to suffer a financial loss or other kind of loss.
Typically, insurable interest is established by ownership, possession, or direct relationship. For example, people have insurable interests in their own homes and vehicles, but not in their neighbors' homes and vehicles, and certainly not those of strangers.
The "factual expectancy test" and "legal interest test" are the two major concepts of insurable interest.
Read more about Insurable Interest: Historical Background, Property Insurance, Life Insurance, Credit Default Swaps
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“Justice is a moral virtue, merely because it has that tendency to the good of mankind, and indeed is nothing but an artificial invention to that purpose. The same may be said of allegiance, of the laws of nations, of modesty, and of good manners. All these are mere human contrivances for the interest of society.”
—David Hume (1711–1776)