Nev. Rev. Stat. » NRS: CHAPTER 687B - CONTRACTS OF INSURANCE
Nevada Revised Statutes

Nev. Rev. Stat. § 687B.040 (2026)

Insurable interest: Personal insurance

✓ current as of July 2026
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NRS 687B.040  Insurable interest: Personal insurance.

      1.  Any natural person of competent legal capacity may procure or effect an insurance contract upon his or her own life or body for the benefit of any person. But a person shall not procure or cause to be procured any insurance contract upon the life or body of another individual unless the benefits under the contract are payable to the person insured or the personal representatives of the person insured, or to a person having, at the time when the contract was made, an insurable interest in the person insured.

      2.  A trust shall not procure, cause to be procured or hold an insurance contract upon the life of a person unless each beneficiary of the trust:

      (a) Has an insurable interest in the person insured; or

      (b) Is a charitable, benevolent, educational or religious institution, or an agency thereof, and is designated irrevocably as a beneficiary of the trust.

      3.  If the beneficiary, assignee or other payee under any contract made in violation of this section receives from the insurer any benefits thereunder accruing upon the death, disablement or injury of the person insured, the person insured or the executor or administrator of the person insured, as the case may be, may maintain an action to recover such benefits from the person so receiving them.

      4.  As used in this section, “insurable interest” as to such personal insurance means that every person has an insurable interest in the life, body and health of himself or herself, and of other persons as follows:

      (a) In the case of persons related closely by blood or by law, a substantial interest engendered by love and affection; and

      (b) In the case of other persons, a lawful and substantial economic interest in having the life, health or bodily safety of the person insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement or injury of the person insured.

      5.  Before, on or after January 1, 1972, an individual party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a corporation or of an interest in such shares, has an insurable interest in the life, body and health of each individual party to the contract and for the purposes of the contract only, in addition to any insurable interest which may otherwise exist as to the person.

      6.  An insurer is entitled to rely upon all statements, declarations and representations made by an applicant for insurance relative to the insurable interest of the applicant in the insured. An insurer does not incur legal liability except as otherwise set forth in the policy, by virtue of any untrue statements, declarations or representations so relied upon in good faith by the insurer.

      (Added to NRS by 1971, 1712; A 1997, 1624; 2009, 1786)

     

Notes of Decisions
Cited in 3 cases (1 in the last 5 years), 2008–2025 · leading case: Waldman v. Maini, 195 P.3d 850 (Nev. 2008).
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Waldman v. Maini, 195 P.3d 850 (Nev. 2008). · cites it 11× “Moreover, we reject MDI’s claim that it acquired a resulting trust in Susan’s policies, as NRS 687B.040 prohibits MDI from obtaining insurance on her life under the circumstances of this case.”
Carton v. B & B Equities Grp., LLC, 827 F. Supp. 2d 1235 (D. Nev. 2011). · cites it 8× “” Nev.Rev.Stat. § 687B.040(1). A trust may also not obtain life insurance upon the life of a person unless each beneficiary of the trust has an insurable interest in the person insured.”
Ameritas Life Ins. Corp. v. Wilmington Sav. Fund Soc'y, FSB, Solely as Sec. Intermediary (D. Del. 2025). “§ 2704(a) (Delaware’s insurable interest statute), with Nev. Rev. Stat. § 687B.040(1) (Nevada’s insurable interest statute).”
— Nev. Rev. Stat. § 687B.040(1) — 3 cases
Carton v. B & B Equities Grp., LLC, 827 F. Supp. 2d 1235 (D. Nev. 2011). “” Nev.Rev.Stat. § 687B.040(1). A trust may also not obtain life insurance upon the life of a person unless each beneficiary of the trust has an insurable interest in the person insured.”
Waldman v. Maini, 195 P.3d 850 (Nev. 2008). “Moreover, we reject MDI’s claim that it acquired a resulting trust in Susan’s policies, as NRS 687B.040 prohibits MDI from obtaining insurance on her life under the circumstances of this case.”
Ameritas Life Ins. Corp. v. Wilmington Sav. Fund Soc'y, FSB, Solely as Sec. Intermediary (D. Del. 2025). “§ 2704(a) (Delaware’s insurable interest statute), with Nev. Rev. Stat. § 687B.040(1) (Nevada’s insurable interest statute).”
— Nev. Rev. Stat. § 687B.040(2)(a) — 1 case
Carton v. B & B Equities Grp., LLC, 827 F. Supp. 2d 1235 (D. Nev. 2011). “” Nev.Rev.Stat. § 687B.040(1). A trust may also not obtain life insurance upon the life of a person unless each beneficiary of the trust has an insurable interest in the person insured.”
— Nev. Rev. Stat. § 687B.040(3)(b) — 1 case
Waldman v. Maini, 195 P.3d 850 (Nev. 2008). “Moreover, we reject MDI’s claim that it acquired a resulting trust in Susan’s policies, as NRS 687B.040 prohibits MDI from obtaining insurance on her life under the circumstances of this case.”
— Nev. Rev. Stat. § 687B.040(4) — 1 case
Carton v. B & B Equities Grp., LLC, 827 F. Supp. 2d 1235 (D. Nev. 2011). “” Nev.Rev.Stat. § 687B.040(1). A trust may also not obtain life insurance upon the life of a person unless each beneficiary of the trust has an insurable interest in the person insured.”
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