Cynthia and Brian were friends.Brian was a dare devil.Because of his antics,Cynthia thought that Brian wasn't long for this life.Cynthia purchased a life insurance policy on Brian's life.Subsequently,Brian was killed in a car accident.Since Cynthia and Brian were friends,Cynthia had an insurable interest in his life and will be entitled to the insurance proceeds.

Question

Quizplus · Accepted Answer

For Cynthia to have an insurable interest in Brian's life, there must be a financial relationship where Cynthia would suffer a financial loss upon Brian's death. Friendship alone does not establish an insurable interest.

Cynthia and Brian Were Friends