Insurable interest must be proven at which point in the insurance process?

Insurable interest must be proven at the time of policy issuance because it is a fundamental principle in insurance that ensures the policyholder has a legitimate interest in the insured item or individual. This means that the policyholder would suffer a financial loss if the insured event (like damage, loss, or death) were to occur. Establishing insurable interest at this stage helps to prevent moral hazard and ensures that insurance contracts are used for their intended purpose—providing protection against genuine risks rather than as speculative ventures.

Without establishing this principle at the time of policy issuance, the contract could be deemed void, as it could allow individuals to insure items or lives that they do not have a legitimate financial interest in, leading to potential misuse of the insurance mechanism. Thus, confirming insurable interest at the outset is crucial for the validity of the insurance contract.