California Insurance Code & EthicsQuestion 62 of 716
For a life insurance policy to be valid in California, the policyowner generally must have an insurable interest in the insured. When must this insurable interest exist?
a.At all times while the policy remains continuously in force
b.Only at the moment the death claim is actually filed
c.Only at the moment of the insured's death, not before
d.At the time the contract is made (policy issuance)
Explanation
Under California law, insurable interest must exist at policy inception. Unlike property insurance (where insurable interest is required at loss), life insurance does not require continued insurable interest after issuance.
Law Reference: Cal. Ins. Code §10110.1This 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)