Who can enforce a contract of insurance that is enforceable only for individuals with insurable interest?

The correct answer is that only those with an economic stake in the insured property can enforce a contract of insurance that is enforceable only for individuals with insurable interest.

Insurable interest is a fundamental principle in insurance law, which stipulates that the policyholder must have a legitimate interest in the insured property or life. This is designed to prevent moral hazard and ensure that individuals are not incentivized to cause loss or damage to property that they have no personal stake in.

An individual with an economic stake genuinely stands to suffer a financial loss if the insured event occurs, which legitimizes their right to enforce the contract. For instance, a homeowner has a clear insurable interest in their property because they want to protect their investment.

On the other hand, individuals who merely receive benefits from the policy, are not named in the policy document, or act as legal representatives of any interested party may lack the necessary insurable interest required to enforce the insurance contract. Thus, only those who hold an economic interest in the property can rightfully enforce the provisions of the insurance policy.