Which party in the insurance contract is responsible for ensuring an insurable interest at application?

The party responsible for ensuring an insurable interest at application is indeed the policyowner. Insurable interest is a crucial component in insurance contracts, as it serves to prevent moral hazard and ensure that the policyowner has a legitimate interest in the continued life or well-being of the insured. This requirement typically necessitates that the policyowner has a direct relationship with the insured, such as familial ties or financial interest.

When applying for life insurance, the policyowner must demonstrate this insurable interest, which is particularly significant at the time of application. The insurer relies on this information to assess the risk and determine the coverage terms. If an insurable interest does not exist at the time of application, the contract may be rendered void.

This responsibility does not fall on the insured or the beneficiary. While the insured is the person whose life or health is covered, and the beneficiary receives the policy benefits upon the insured's death, it is the policyowner who must establish this interest. The insurer, primarily, is on the receiving end of the contractual obligations and benefits but does not bear the responsibility of proving insurable interest during the application process.