L&HFloridamedium
Under Florida law, when must insurable interest exist for a life insurance policy procured on the life of another person?
At the time the policy was made
BBoth at policy inception and at the time of the insured's death
COnly at the time of the insured's death
DInsurable interest is not required for life insurance because it is a valued contract
Why this is the answer
Florida Statutes §627.404(1) provides that a person procuring life insurance on another must have an insurable interest in the insured at the time the contract is made, and expressly states that the insurable interest 'need not exist after the inception date of coverage under the contract.' This is the opposite of the property-insurance rule, where insurable interest must exist at the time of loss. The life-insurance timing rule is what makes ex-spouses' policies and key-person policies on departed employees legally enforceable after the relationship ends. Per Fla. Stat. §627.404(1).
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