At what point does a life insurer not require proof of insurable interest?

The correct answer is when renewing a policy. At this stage, the life insurer typically does not require proof of insurable interest because the original application process would have already established that the policyholder has valid insurable interest in the life being insured. The principle of insurable interest applies at the onset when the policy is first issued, ensuring that the policyholder has a legitimate interest in the continued life of the insured. Renewal of the policy is simply a continuation of that agreement, and the insurer relies on the original determination rather than seeking fresh proof.

In contrast, during the initial application process, proof of insurable interest is a fundamental requirement because it verifies the appropriateness of the insurance contract. When a claim is filed, the insurer's focus shifts more toward validating the claim rather than reconsidering insurable interest unless there are unusual circumstances. Additionally, changes to beneficiaries might necessitate a reassessment of insurable interest, especially if a new beneficiary is named who was not previously covered under the initial application terms.