Q132
According to common law, when should insurable interest be present in a life insurance contract?
A.
At the time of taking policy
AnswerB.
At the time of claim
C.
Both A & B
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
According to common law, At the time of taking policy insurable interest must be present in a life insurance contract. If there was no insurable interest requirement, some people would be tempted to purchase life insurance policies to collect the death benefit by killing the insured. A person is always considered to have an unlimited insurable interest in his own life and health.