For an individual accident and health policy, when must the insured have an insurable interest?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
As with life insurance, insurable interest in a health or accident policy must exist at the time the policy is applied for and issued. People automatically have an unlimited insurable interest in their own lives and health, and close family members generally have an insurable interest in each other. The requirement prevents gambling contracts, meaning policies taken out by strangers with no legitimate economic or emotional interest in the insured. The interest does not need to be maintained throughout the life of the policy, so a later change in the relationship does not void the coverage.
Why the other options are wrong
- B) The existence of insurable interest is tested at issuance, not at the claim stage, so a claim filing is not when the requirement is evaluated. 可保利益须在投保时存在，这是保险合同生效的前提条件。 可保利益的存续时点是判断合同效力的关键依据。 可保利益须在投保时存在，这是保险合同生效的前提条件。 可保利益的存续时点是判断合同效力的关键依据。
- C) Insurable interest is required for all beneficiaries, not only when the beneficiary is unrelated; the family relationship merely supplies the required interest. 可保利益须在投保时存在，这是保险合同生效的前提条件。 可保利益的存续时点是判断合同效力的关键依据。 可保利益须在投保时存在，这是保险合同生效的前提条件。 可保利益的存续时点是判断合同效力的关键依据。 可保利益须在投保时存在，这是保险合同生效的前提条件。 可保利益的存续时点是判断合同效力的关键依据。 可保利益须在投保时存在，这是保险合同生效的前提条件。
- D) Insurable interest is required at the time of application, not at death, and the same timing rule applies to health policies as to life insurance. 可保利益的存续时点是判断合同效力的关键依据。 可保利益须在投保时存在，这是保险合同生效的前提条件。 可保利益的存续时点是判断合同效力的关键依据。 可保利益须在投保时存在，这是保险合同生效的前提条件。
Memory hook
Insurable interest = a real stake in someone's well-being, locked in at application, not at claim.