Guam § 18208 - Insurable Interest: Change.

§ 18208. Insurable Interest: Change.

Except in the cases herein specified, and in the cases of life

and disability insurance, a change of interest in any part of a

subject insured, unaccompanied by a corresponding change of

interest in the insurance, suspends the insurance to an equivalent

extent until the interest in the subject and the interest in the

insurance are vested in the same person.

(a) A change of interest in a subject insured after the

occurrence of an injury which results in a loss does not

affect the right of the insured to indemnity for the loss.

(b) A change of interest in one or more of several

distinct subjects separately insured by one policy does not

avoid the insurance as to the others.

(c) A change of interest by will or succession, on the

death of the insured, does not avoid insurance; and his

interest in the insurance passes to the person taking his

interest in the subject matter insured.

(d) In the case of partners, joint owners, or owners in

common, who are jointly insured, a transfer of interest by

one to another thereof does not avoid insurance even though

it has been agreed that the insurance shall cease upon an

alienation of the subject insured.