Florida Life and Health Insurance License Practice Test

Question: 1 / 400

When must insurable interest exist in a life insurance contract?

At the inception of the contract

In a life insurance contract, insurable interest must exist at the inception of the contract. This means that the person taking out the policy must have a financial interest in the life of the insured. This ensures that the insurance policy is not being taken out for fraudulent reasons.

Option B is incorrect because insurable interest must exist when the contract is entered into, not just at the time of claim. Option C is incorrect because the insurable interest must remain throughout the policy term, not just at certain points in time. Option D is incorrect because insurable interest is required from the beginning of the contract, not just after it has lapsed.

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At the time of claim

Throughout the policy term

After the policy has lapsed

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