L&HIllinoismedium
Under 215 ILCS 5/229.2, which of the following best describes Illinois's insurable interest rule for life insurance at policy inception?
Insurable interest must exist at the time the policy is issued, but is not required at the time of death
BInsurable interest is required only at the time of death, never at issue
CInsurable interest is never required in Illinois
DInsurable interest must exist continuously from issue through death
Why this is the answer
Under 215 ILCS 5/229.2, a person procuring life insurance on another must have insurable interest in the insured's life at the time the contract is made. Insurable interest is not required at death, which is why valid life policies remain enforceable after the relationship that created the interest ends. This rule also undergirds Illinois's prohibition on stranger-originated life insurance (STOLI).
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