1. In life insurance, insurable interest must exist:

At the time the policy is applied for (inception)

For life insurance, insurable interest must exist at policy inception, not necessarily at the time of loss.

2. Which party automatically has an insurable interest in an applicant's life?

The applicant in their own life, and close family or business partners

A person has insurable interest in their own life and typically in the lives of close family members or business associates.

3. The primary personal use of life insurance is to:

Replace income and provide financial security for dependents after death

Life insurance primarily protects dependents by replacing lost income and covering financial obligations at death.

4. The approach that estimates a life insurance need based on the insured's future earnings lost to premature death is the:

Human life value approach

The human life value approach values coverage by the present value of the insured's future earnings.