Legal Purpose

Published: | Updated: August 25, 2017

Definition - What does Legal Purpose mean?

Legal purpose is an insurance principle according to which insurance contracts that insure something illegal or involves illegal conditions are not valid. For example, a liability insurance policy for a bank robbery company would not be valid. None of the claims filed would be legally enforceable.

Insuranceopedia explains Legal Purpose

Legal purpose ensures that insurance companies do not end up insuring criminal activities. Without it, the crime rate could increase due to reduced financial risk.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: