What is Wager Policy?

This is a kind of insurance policy in which the insured does not have an insurable interest in the subject matter of insurance and in which the underwriter dispenses with any proof of interest. It is not a valid policy in the eye of law. Another way Wager policy a policy that shows on the face of it that the contract it embodies is a pretended insurance, founded on an ideal risk, where the insured has no interest in anything insured.