Insurable Interest
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Long-Term Insurance Coverages and Retirement Financial Security Programs. 9 min read, ~1,294 words.
Life insurance: insurable interest required at inception only. Property insurance: insurable interest required at time of loss. Self: unlimited insurable interest in own life, always valid. Family: spouse, parent-child, presumed without dollar limit. Creditor/business: limited to debt amount or economic value. Valid policies can be assigned to anyone; STOLI (stranger-originated)...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 7a
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