Insurable interest laws define who may be the owner and beneficiary of a policy at issue and under what relationships insurable interest exists. Statutes and case law address family relationships, business contexts (key person, buy-sell, creditor coverage), and limits intended to prevent stranger-originated life insurance. Because rules vary by state, producers document relationships and economic ties to withstand scrutiny and ensure policies are enforceable.

Agencies maintain state matrices and require documentation-marriage certificates, partnership agreements, creditor agreements-so files meet local insurable-interest standards at issue.