Final answer:
Insurable interest must exist between the policyowner and the insured for a third-party ownership policy to be issued by a life insurance company.
Step-by-step explanation:
The requirement for a third-party ownership policy to be issued by a life insurance company is that insurable interest must exist between the policyowner and the insured. Insurable interest means that the policyowner must have a financial or emotional interest in the life or well-being of the insured. This requirement ensures that the policy is not being taken out purely for speculative purposes.