A Georgia business partner purchases a life policy on the life of another partner, with an insurable interest clearly present at issue. Years later the partnership dissolves, the policy remains in force, and premiums continue to be paid; the insured partner then dies. Under O.C.G.A. § 33-24-3(h), what is the status of the coverage?

Why D is correct

Under O.C.G.A. § 33-24-3(h), insurable interest must exist when the contract becomes effective; it need not exist at the time of the loss. Once a policy issued with a valid insurable interest remains in force, the later disappearance of that interest does not void it. This inception-only requirement distinguishes life insurance from property-casualty concepts and protects beneficiaries whose interest may lawfully change over time.

Why the other options are wrong

• A) The later ending of the insurable interest does not void a policy that was valid at inception under § 33-24-3(h).
• B) No premium return occurs; the policy remains valid because the interest test applies only at inception.
• C) No judicial confirmation is required; the statute fixes the timing of the insurable-interest test as contract inception.

Memory hook

Insurable interest is an inception test, not a death-day test.