General Insurance PrinciplesQuestion 193 of 315
When must insurable interest exist for a life insurance policy in California?
a.At the time of the insured's death
b.At the time the policy is issued
c.Insurable interest is not required for life insurance
d.Both at issue and at death
Explanation
For life insurance, insurable interest must exist when the policy is issued. It need not exist at the time of the insured's death. For property insurance the rule is the opposite: insurable interest must exist at the time of loss.
Law Reference: Cal. Ins. Code §10110.1Practice all 315 questions free — no signup required.
Related questions on this topic
- Under California law, a fact is considered material if:
- On her life insurance application Maria states she has never used tobacco. She had quit two years before applying and believed the answer was correct. Three years later she dies and the insurer learns she had smoked socially as a teenager. Maria's statement is BEST classified as a:
- The doctrine that requires both the applicant and the insurer to deal honestly and disclose all material facts is known as:
- Which of the following persons does NOT automatically have an insurable interest in another's life?
- The principle of indemnity is intended to:
- Subrogation is BEST defined as:
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Sen Lin, PrepPass Founder · 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)