L&HNJmedium
Under New Jersey life insurance law, at what point in time must insurable interest exist in order for a life insurance contract on the life of another to be valid?
At the time the policy is issued
BAt the time of the insured's death
CContinuously from issue through the date of claim
DOnly when the policy is first assigned
Why this is the answer
New Jersey life insurance law requires insurable interest to exist at the inception of the contract. Once the policy is validly issued, the later loss of insurable interest does not invalidate the policy or defeat a beneficiary's claim.
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