Under Georgia law, when must insurable interest exist for a life insurance policy to be valid, and what practice does Georgia's Life Settlements Act prohibit?

Why this is the answer

O.C.G.A. § 33-24-3 establishes that insurable interest in a life insurance contract must exist at the time the contract becomes effective (issue), not at the time of loss. Georgia's Life Settlements Act separately prohibits stranger-originated life insurance (STOLI): O.C.G.A. § 33-59-2 lists it as a fraudulent life settlement act and § 33-59-16 forbids such acts. STOLI covers arrangements in which a third party with no insurable interest procures coverage on a person's life with the intent of selling or transferring it to investors. Lawful viatical/life settlements after issuance are not banned.