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GlobeTech Systems (GTS), a corporation, obtains a life insurance policy on the life of its founder and chief executive officer, Mr. Diego Rivera. GTS is the policy owner and premium payer, and GTS is named as the beneficiary. To secure a separate loan, Bank Central is named as collateral assignee of the policy proceeds to satisfy the loan. After Rivera dies, Bank Central asks the insurer to pay the policy proceeds to Bank Central to cover the loan balance. The insurer refuses, citing lack of insurable interest or improper assignment.   (a)Identify the controlling doctrine governing the validity of this life-insurance contract and explain the effect of GTS’s designation as owner/beneficiary and Bank Central’s collateral assignment on Rivera’s insurable interest. (b)Explain whether insurable interest must exist at the time of policy issuance, at the time of loss, or both, and distinguish the rule for life vs. property insurance. (c)Apply the doctrine to the facts: is the policy contract valid? Is Bank Central entitled to the proceeds? To what extent, and what defenses may the insurer raise?