A more thorough explanation:

A gambling policy is a type of insurance policy that is illegal in most states. It is issued to a person who has no insurable interest in the person or property covered by the policy. This means that the person has no financial stake in the outcome of the event being insured. For example, a person cannot take out a gambling policy on someone else's life or property.

Wager policies are also known as graveyard insurance because they are often taken out on the lives of elderly or sick individuals. They are illegal because they encourage people to profit from the misfortune of others.

It is important to note that gambling policies are not the same as interest policies. An interest policy is one in which the insured has a financial stake in the person or property being insured. For example, a person can take out an interest policy on their own life or property.

Examples of gambling policies include policies taken out by individuals who have no relationship to the insured person or property. These policies are often taken out for large sums of money and are based on the outcome of a specific event, such as a horse race or a sporting event. These policies are illegal because they are based on chance and do not involve a legitimate financial interest.