General Insurance PrinciplesQuestion 194 of 315
Which of the following persons does NOT automatically have an insurable interest in another's life?
a.A spouse on the other spouse's life
b.A neighbor on the homeowner next door
c.A business partner on a key partner's life
d.A parent on a minor child's life
Explanation
Insurable interest in another's life requires either a close family relationship or a substantial economic interest. Spouses, parents, children, business partners, and key employees qualify. A neighbor, with no family or financial tie, does not.
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