Angela, owner of a condominium unit, insured the same against fire with the ELM Insurance Co., and made the loss payable to his sister, Antonette. In case of loss by fire of the said condominium unit, who may recover on the fire insurance policy?

 

Angela can recover on the fire insurance policy for the loss of said condominium unit. He has the insurable interest as owner-­‐insured. As beneficiary in the fire insurance policy, Antonette cannot recover on the fire insurance policy. For the beneficiary to recover on the fire or property insurance policy, it is required that she must have insurable interest in the property insured. In this case, Antonette does not have insurable interest in the condominium unit. (2001 Bar Question)