What is required for a life insurance policy to be valid?
Hint:Review the concept of insurable interest
The policyholder must have a financial interest in the continued life of the insured at the time of policy application
The policyholder must have a financial interest in the continued life of the insured, but this interest is not required at the time of policy application
The policyholder must have a direct familial relationship with the insured, such as being a parent or child
None of the above
Explanation
For a life insurance policy to be valid, the policyholder must have an insurable interest in the life of the insured, which means a legitimate financial interest in the continued life of the insured that is required at the time of policy application.