In life insurance contracts, the required insurable interest must exist at the time the policy was issued.

Question

Quizplus · Accepted Answer

This is a fundamental principle of life insurance. The policyholder must have a financial interest or relationship with the insured individual at the time the policy is issued. This ensures that the policyholder has a legitimate reason for taking out the policy and helps prevent fraud or speculation.

In Life Insurance Contracts, the Required Insurable Interest Must Exist