When must insurable interest exist for a life and health contract?

Insurable interest for a life and health contract must exist at the time of the application. This means that the individual applying for the insurance must have a legitimate interest in the continued life or health of the person being insured. This principle is essential because it helps to prevent moral hazard, which is the risk that someone might take out a policy on someone else's life or health without any genuine connection, potentially leading to unethical outcomes.

Having insurable interest at the time of application ensures that the applicant is likely to incur a financial loss if the insured party were to die or suffer a health issue, thus promoting responsible insurance practices. If insurable interest did not exist at this stage, it could lead to policies being issued without proper justification, possibly resulting in fraudulent claims or exploitation of the insurance system.

The concept of insurable interest is rooted in the idea of preventing speculative or gambling-like situations regarding someone's life or health, solidifying the ethical framework of insurance contracts. Other moments, such as at the time of policy issuance, claim, or renewal, do not hold the same requirement, as insurable interest is a prerequisite to ensure the integrity of the insurance coverage from the very beginning.