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.At all times the policy is in force
b.Only at the time the claim is filed
c.Only at the time of the insured's death
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 §10110.1Practice all 315 questions free — no signup required.
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Last reviewed: · editorial process
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)