What does Royalty Interest mean? Read on to discover the definition & meaning of the term Royalty Interest - to help you better understand the language used in insurance policies.
Ownership of a portion of the resource or revenue produced from the leased property. Typically, the owner of the leased property retains a royalty interest. The party with the royalty interest is not responsible for the costs and liabilities associated with the exploration, development, and operation of a well.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Royalty Interest. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: