When must an insurable interest exist for life insurance and property insurance,respectively?

Question

Quizplus · Accepted Answer

For both life insurance and property insurance, an insurable interest must exist at the time of policy issuance and at the time of loss. An insurable interest means that the policyholder must have a financial stake in the life or property being insured, such that they would suffer a financial loss if the insured event occurs. This requirement ensures that insurance is not used for speculative purposes and that the policyholder has a legitimate reason to purchase the insurance.

When Must an Insurable Interest Exist for Life Insurance and Property