General Insurance PrinciplesQuestion 194 of 315
Which of the following persons does NOT automatically have an insurable interest in another's life?
a.A business partner on a key partner's life
b.A neighbor on the homeowner next door
c.A spouse on the other spouse'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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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)