An insurable interest in property must exist at the time that the loss is suffered, while an insurable interest in life must exist at the time that the policy is issued.

Question

Quizplus · Accepted Answer

An insurable interest in property is based on the ownership or financial stake in the property, so it must be present at the time of loss. In contrast, an insurable interest in life is based on a close relationship or financial dependence on the person whose life is being insured, so it must exist at the time of policy issuance.

An Insurable Interest in Property Must Exist at the Time