P&CGeorgiamedium
Under O.C.G.A. § 33-24-3, when must insurable interest exist for a Georgia life insurance contract to be enforceable?
AAt the time of loss, but need not exist at policy inception
BAt both contract inception and at the death of the insured
COnly when the insured is a third party other than the applicant
At the time the contract becomes effective, but need not exist at the time of loss
Why this is the answer
O.C.G.A. § 33-24-3 requires insurable interest in life insurance to exist when the contract is made; it need not continue to exist at the time of loss. This is the opposite of the property rule in § 33-24-4, which requires interest only at the time of loss. An individual always has insurable interest in his or her own life. Third-party policies require insurable interest in the proposed insured at inception, evidenced by a family relationship, economic interest, or other substantial concern.
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