Single Interest Insurance

Definition

• An insurance policy that only protects a single party when multiple parties have vested interests in property. For example, a lender may take out some form of single interest insurance policy in order to financially protect themselves in case a borrower defaults on their loan.

Synonyms
single party insurance

Related Terms and Acronyms

• Business Insurance — Definition,
  • An umbrella term for insurance that covers various losses that may arise due to the operation of a business.
• Business Life Insurance — Definition,
  • Life insurance that provides coverage in the event that a person key to the operation of a business dies.
• Entity-Purchase Agreement — Definition,
  • A plan used for businesses with multiple owners where insurance policies are taken out for each owner in the amount of their ownership stake.
• Insurable Interest — Definition,
  • Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
• Insurance (insur) — Abbreviation,
  • An arrangement where one party provides financial protection to another party for specific damages or losses.
• Life Insurance — Definition, Very Important,
  • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
  ➥ CanEquity offers life insurance.
• Mortgage Insurance — Definition, Very Important,
  • Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
  • A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
  ➥ CanEquity offers mortgage insurance.
• Mortgage Life Insurance — Definition, Very Important,
  • Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
• Property Insurance — Definition,
  • Insurance that provides coverage for damages to property from a number of perils.
• Stranger Originated Life Insurance (STOLI) — Acronym,
  • A life insurance policy purchased by someone without any insurable interests with the insured person.
  ➥ Illegal in many Canadian provinces.