Life Insurance and Insurable Interest

In Louisiana, any individual procuring life insurance may name any person as the beneficiary.

No person can procure a life insurance contract upon the life of another person, unless payable to the individual insured or his personal representatives, or to a person with an insurable interest in the individual insured at the time the contract was made. Insurable interest includes only

1. In the case of individual related closely by blood or by law, a substantial interest engendered by love and affection.

2. In the case of other persons, a lawful and substantial economic interest in having the life, health or bodily safety of the individual insured continue.

3. Certain business relationships gives rise to an insurable interest.

A spouse may effectuate life insurance upon the other spouse without his/her consent.

Any person having an insurable interest in the life of a minor, or any person upon whom a minor is dependent for support and maintenance, may effectuate insurance upon the life of the minor.

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