A sells his house to B, and a fire occurs before the insurance on the house is cancelled by A. Who can collect the insurance monies? A or B.

Neither Mr. A nor Mr. B can collect the insurance monies. This is because of the principle of 'Insurable Interest'. Insurable Interest means an interest which can be or is protected by a contract of insurance. This interest is considered as a form of property in the contemplation of law. It is only the presence of Insurable Interest that distinguishes a contract of insurance from a wagering contract and hence it is sine qua non for the validity of the contract of insurance. All the statutes say that an insurance contract will become a wagering contract and hence void if it is taken place without an insurable interest. In this scenario: A (the seller) no longer has an insurable interest in the house once it is sold to B, even if the policy is not yet cancelled. The insurable interest must exist at the time of loss for property insurance. B (the buyer) cannot collect the insurance monies because B is not named as the insured under A's policy. B would need to obtain their own insurance policy to have an insurable interest protected by a contract. Therefore, since A has lost insurable interest and B is not the insured, neither can collect the insurance monies.