California Insurance Code & EthicsQuestion 62 of 315
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.Only at the time of the insured's death
b.Only at the time the claim is filed
c.At the time the contract is made (policy issuance)
d.At all times the policy is in force
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 §10110.1Practice all 315 questions free — no signup required.
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