§ 10-7-701. Short Title

This part 7 shall be known and may be cited as the “Insurable Interest Act”. Source: L. 2011: Entire part added, (SB 11-182), ch. 227, p. 972, § 1, effective May 27.

§ 10-7-702. Definitions

As used in this part 7, unless the context otherwise requires: “Business entity” means a legal entity, including a joint venture, partnership, corporation, limited liability company, or business trust. “Person” means any natural person, business entity, association, or trust. “Policy” means an individual or group policy, group certificate, contract, or arrangement of life insurance affecting […]

§ 10-7-703. Insurance on the Life of Another

A person shall not procure or cause to be procured or effected a policy upon the life of another individual unless the benefits under the policy are payable to the insured, to the personal representative of the insured’s estate, or to a person having, at the time the policy is issued, an insurable interest in […]

§ 10-7-704. Insurable Interest

An insurable interest, with reference to insurance on the life of another, exists only as follows: An individual has an insurable interest in the life of another person in whom the individual has a substantial interest engendered by love and affection in the continuation of the life of the insured and who are: Related within […]

§ 10-7-705. Insured’s Own Life

An individual has an insurable interest in the individual’s own life, and an individual of competent legal capacity who procures or effects a policy on the individual’s own life may designate any person as the beneficiary and, unless the individual elects an irrevocable beneficiary designation, change the beneficiary at any time thereafter. Source: L. 2011: […]

§ 10-7-706. Reliance on Statements

An insurer is entitled to rely upon all reasonable statements, declarations, and representations made by an applicant for life insurance relative to the existence of an insurable interest. No insurer incurs legal liability, except as set forth in the policy, by virtue of untrue statements, declarations, or representations relied upon in good faith by the […]

§ 10-7-707. Consent of Insured

A policy upon the life of an individual, other than a policy of noncontributory group life insurance, shall not be effected unless, at or before the time the policy is effectuated, the individual insured, having legal capacity to contract, applies for or consents in writing to the policy and its terms. Consent may be given […]

§ 10-7-708. Prohibited Practices

It is unlawful for any person to procure, or cause to be procured or effected, a policy in violation of section 10-7-703. Such conduct is an unfair or deceptive act or practice pursuant to section 10-3-1104. It is unlawful for any person to engage in stranger originated life insurance or otherwise wager on life. Such […]

§ 10-7-709. Actions to Recover Death Benefits

If the beneficiary, assignee, or other payee received the death benefits under a life insurance policy procured or effected in violation of this article, the personal representative of the insured’s estate or other lawfully acting agent may maintain an action to recover the death benefits from the person receiving them. Source: L. 2011: Entire part […]

§ 10-7-710. Legitimate Insurance Transactions

Except where a life insurance policy is procured or effected in violation of section 10-7-708, nothing in this article prevents: An owner of a policy, whether or not the owner of the policy is also the subject of the insurance, from entering into a viatical settlement contract; Any person from soliciting a person to enter […]