Insurable Interest Explained: Who Can Legally Insure Whom?

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Insurable Interest Explained: Who Can Legally Insure Whom?

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Can you purchase life insurance on a stranger? Can a business insure the life of an employee? And what happens when someone takes out an insurance policy hoping to profit from another person’s death? In this episode of Insurance Exam in the Car, we explain insurable interest, one of the most important legal principles tested on the Life and Health Insurance Licensing Exam. Learn the difference between life and property insurance, recognize common exam traps, and understand how insurable interest helps prevent fraud.

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