26.1-29-04. Insurable interest defined and classified.

An insurable interest is an interest in property, or any relation thereto, or liability in respect thereof, of such a nature that a contemplated peril might damnify directly the insured, and may consist in:

1. An existing interest;

2. An inchoate interest founded on an existing interest; or

3. An expectancy coupled with an existing interest in that out of which the expectancy arises.