Sole Ownership Clause Law and Legal Definition
Sole ownership clause is a provision in an insurance policy to prevent a party who had an undivided or contingent, but insurable, interest in property from appropriating to his own use, the proceeds of a policy taken upon the valuation of the entire and unconditional title, as if he were the sole owner, and to remove him from the temptation to perpetrate fraud and crime.
The effect of a sole ownership clause in a policy is to require that the title of the insured shall be the actual and substantial ownership, rather than the strictly legal title; that his interest must be of such nature that he will sustain the whole loss, if the property is destroyed. [World Fire & Marine Ins. Co. v. Bugarosky, 176 Okla. 150 (Okla. 1935)].
