Section 286 Of Article 4. Insurable Interest: Generally From California Insurance Code >> Division 1. >> Part 1. >> Chapter 2. >> Article 4.

. An interest in property insured must exist when the insurance takes effect, and when the loss occurs, but need not exist in the meantime; an interest in the life or health of a person insured must exist when the insurance takes effect, but need not exist thereafter or when the loss occurs.