PARRIS N. GLENDENING, Governor

Ch. 36

IN THIS SECTION, "INSURABLE INTEREST" MEANS AN ACTUAL, LAWFUL, AND
SUBSTANTIAL ECONOMIC INTEREST IN THE SAFETY OR PRESERVATION OF THE
SUBJECT OF THE INSURANCE AGAINST LOSS, DESTRUCTION, OR PECUNIARY
DAMAGE OR IMPAIRMENT TO THE PROPERTY.

(B)     ENFORCEABILITY.

A CONTRACT OF PROPERTY INSURANCE OR A CONTRACT OF INSURANCE OF
AN INTEREST IN OR ARISING FROM PROPERTY IS ENFORCEABLE ONLY FOR THE
BENEFIT OF A PERSON WITH AN INSURABLE INTEREST IN THE PROPERTY AT THE
TIME OF THE LOSS.

(C)     EXTENT OF INSURABLE INTEREST.

AN INSURABLE INTEREST IN PROPERTY IS MEASURED BY THE EXTENT OF
POSSIBLE HARM TO THE INSURED FROM LOSS, INJURY, OR IMPAIRMENT OF THE
PROPERTY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 367(a), (b), and (e).

In subsection (c) of this section, the reference to "the extent of possible harm
to the insured" is substituted for the former reference to an insured who
"might be damnified" for clarity.

Former Art. 48A, § 367(c), which allowed a married woman to have an
insurable interest in property in the same manner as if she were not married,
is deleted as obsolete. See Md. Decl. of Rights, Art. 46. See also FL, § 4-204.

Defined terms: "Insurance" § 1-101
"Property insurance" § 1-101

12-302. GUARDIAN AUTHORIZED TO INSURE MINOR'S PROPERTY.

(A)     IN GENERAL.

A GUARDIAN OF A MINOR MAY INSURE FOR THE MINOR PROPERTY THAT THE
MINOR OWNS.

(B)     EFFECT OF INSURANCE.

A PROPERTY INSURANCE CONTRACT ISSUED TO A GUARDIAN UNDER
SUBSECTION (A) OF THIS SECTION HAS THE SAME EFFECT AS IF THE MINOR WERE
AN ADULT AND HAD MADE THE PROPERTY INSURANCE CONTRACT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 367(d).

Throughout this section, references to a "minor" are substituted for the
former references to a "ward" and "a person under eighteen years of age".
See Art. 1, § 24.

In subsection (a) of this section, the former reference to property owned by a
ward "either jointly or in severalty" is deleted as surplusage.

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