What is required for a life insurance policy to be valid in West Virginia?

For a life insurance policy to be valid in West Virginia, it must be backed by insurable interest and sound underwriting practices. Insurable interest is a fundamental principle in insurance that requires the policyholder to have a legitimate interest in the continued life of the insured person. This means that the policyholder would suffer a financial loss or hardship if the insured were to pass away.

Additionally, sound underwriting practices ensure that the insurer assesses the risk associated with the individual being insured appropriately. Underwriting involves evaluating the applicant's health, lifestyle, and other factors to determine the terms of the policy and suitable premium rates. Both of these elements are essential for a legally binding life insurance contract to exist.

Other options like having a minimum premium or needing to purchase through a licensed agent are not general requirements for the validity of a policy itself. While these elements can influence the specifics of purchasing a policy, they do not affect its fundamental legal enforceability. Furthermore, the idea that a policy must be renewed every year does not apply to all life insurance policies, particularly those that may be permanent or whole-life policies, which do not require annual renewal.