§431:10-202 Definitions.  For purposes of this part:

"Insurableinterest" includes only interests as follows:

(1)  In the case ofindividuals related closely by blood or by law, a substantial interestengendered by love and affection.

(2)  In the case of otherpersons, a lawful and substantial economic interest in having the life, health,or bodily safety of the individual insured continue, as distinguished from aninterest which would arise only by, or would be enhanced in value by, thedeath, disablement, or injury of the individual insured.

(3)  An individual party toa contract or option for the purchase or sale of an interest in a businesspartnership or firm, or of shares of stock of a close corporation or of aninterest in such shares, has an insurable interest in the life of eachindividual party to the contract and for the purposes of the contract only, inaddition to any insurable interest which may otherwise exist as to the life ofthe individual.

(4)  A charitableorganization as defined in section 467B-1 has an insurable interest in the lifeof each proposed insured who joins with said organization in applying for alife insurance policy naming said organization as owner and irrevocablebeneficiary.

"Policy"means the written instrument in which a contract of insurance and anyendorsement or addendum thereto is set forth. [L 1987, c 347, pt of §2; am L1988, c 49, §1; am L 2005, c 22, §25]