When is an insurable interest required in life insurance contracts in Georgia?

An insurable interest in life insurance contracts is required at the time of application. This means that when an applicant seeks to purchase a life insurance policy, they must have a legitimate interest in the life of the insured, which typically translates to a financial or emotional stake in that person's well-being. This requirement exists to prevent insurance contracts from being used as wagers on someone’s life or as tools for fraud.

In Georgia, as in many other jurisdictions, ensuring that an insurable interest exists at the outset establishes the legitimacy of the contract and helps uphold the principle of indemnity. Once the policy is issued, the insurable interest is no longer a requirement to maintain the policy, which allows for flexibility in the ownership of life insurance policies over time.

The other options describe moments when insurable interest is not necessary or relevant. For instance, requiring insurable interest at the time of the policy delivery or at the time of claim does not align with the fundamental principles governing life insurance contracts.