Balentine and Gianeta were friends who co-owned a commercial building. After Balentine went bankrupt, they transferred the property to Gianeta. Gianeta allowed Balentine to use the property and gave him authority to manage it.

When the building was damaged, Balentine filed an insurance claim that was denied by the insurer. The insurer claimed Balentine had no insurable interest.

The court ultimately found in favor of Balentine.

CASE QUESTIONS

1. Why would the insurer deny Balentine’s claim?

2. On what grounds would the court find that Balentine had an insurable interest?