MANAGEMENT

Detailed explanation-1: -For life insurance, the insurable interest only needs to exist at the time the policy is purchased. Since a policyowner must have an insurable interest in the insured at the time the policy is purchased, individuals cannot arbitrarily take out a life insurance policy on anyone they want.

Detailed explanation-2: -On one’s own life Every person is presumed to have insurable interest in his own life without any limitation.

Detailed explanation-3: -As a general rule, the insurable interest for property insurance must exist both at the time of insurance purchase and at the time of loss incidence.

Detailed explanation-4: -The correct answer is (b) An insurable interest must exist when the policy is issued and when any loss occurs.