Insurable interest exists when there is an economic interest in the continued life of the insured.

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Insurable interest exists when there is an economic interest in the continued life of the insured.

Explanation:
Insurable interest in life insurance means the policyowner would suffer a financial loss or hardship if the insured dies. This relationship isn’t restricted to blood relatives; it can include spouses, children, business partners, creditors, or anyone who would incur a measurable economic loss or gain from the insured’s continued life. This requirement helps prevent wagering on someone’s death and ensures the policy is owned by someone with a legitimate stake in the insured’s life. Because insurable interest exists in these kinds of economic or financial relationships, the statement is true.

Insurable interest in life insurance means the policyowner would suffer a financial loss or hardship if the insured dies. This relationship isn’t restricted to blood relatives; it can include spouses, children, business partners, creditors, or anyone who would incur a measurable economic loss or gain from the insured’s continued life.

This requirement helps prevent wagering on someone’s death and ensures the policy is owned by someone with a legitimate stake in the insured’s life. Because insurable interest exists in these kinds of economic or financial relationships, the statement is true.

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