With this scenario Interstate Distribution Corporation will be able to recover the loss amount through their insurance policy with Good Hands Insurance. Now Eagle Sales Company will lose their investment in the matter upon selling the property, so the owner of the building would be the one who is be able to insure the building. This would be called insurable interest and most likely, Good Hands Insurance would have noticed the discrepancy and cancelled the original policy. So the concept of insurable interest is to keep people from taking advantage of the system. Now if Interstate Distribution Corporation has borrowed money from First National Bank and has gotten an insurance policy in its own name, the bank, as part of the loaning deal it
