Demetrius was turned down when he attempted to buy a life insurance policy on his former Introduction to Business instructor. The most likely reason the insurance company turned down his attempt to insure the life of his former instructor was that:
A) the chance of the loss could not be measured.
B) he did not have an insurable interest in the instructor's life.
C) the instructor had already taken out a policy.
D) the loss would not be accidental.

Question

Quizplus · Accepted Answer

To have an insurable interest in someone's life, you must have a financial or emotional relationship with that person that would be adversely affected by their death. Demetrius did not have any such relationship with his former instructor, and therefore, did not have an insurable interest in their life. Without an insurable interest, the insurance company would not issue a policy.

Demetrius Was Turned Down When He Attempted to Buy a Life