In Phoenix Ins. Co. v. Brown,' the named insured in a fire policy was Walter Brown. Walter had at one time owned the property insured. He had, however, conveyed it to his divorced wife Elsie, for whom he "was looking after the property," prior to the taking out of this policy. It was not alleged that the defendant's agent (who had previously written other policies on the property in Walter's name at the time Walter was the title-holder) knew of the conveyance to Elsie. After total destruction by fire the defendant refused to pay on the grounds of the lack of insurable interest. The Court of Appeals for the Eastern Section affirmed a judgment against the company.
The court concluded: "Under the proof in this case, Walter Brown acted as the agent of the owner in looking after the property and keeping it insured. If he had failed to procure insurance he might have been held responsible for the loss and we think, under the authorities above cited and discussed, he had an insurable interest."
Robert N. Covington,
Insurance -- 1964 Tennessee Survey,
18 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol18/iss3/19