Life Insurance FundamentalsQuestion 134 of 716
Marco buys a $500,000 life insurance policy on his spouse. They divorce three years later, and Marco continues paying premiums. When his ex-spouse dies four years after the divorce, can Marco still collect?
a.Yes, but only half the face amount, because a divorce cuts a spouse's insurable interest exactly in half
b.Yes — in life insurance, insurable interest only needs to exist at the time the policy is issued
c.No — a final judgment of divorce automatically voids any life policy on a former spouse
d.No — insurable interest must exist at issue and must continue for every year the policy remains in force
Explanation
In life insurance, insurable interest must exist at policy issue but does not have to continue afterward. Since Marco and his spouse were married when the policy was issued, the policy remains valid even after divorce.
Law Reference: Cal. Ins. Code §10110This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)