Which of the following types of relationships is presumed NOT to have an insurable interest?

The concept of insurable interest is a fundamental principle in insurance, which ensures that the person purchasing the insurance stands to suffer a financial loss if the insured event occurs. In most cases, intimate and close personal relationships are recognized as having an insurable interest due to the potential financial or emotional repercussions of a loss.

In this context, a neighbor and friend relationship is typically considered to lack a sufficient financial incentive or obligation that would warrant an insurable interest. While there may be emotional ties, the connection does not usually evidence a financial stake in each other’s well-being that the insurance industry recognizes as insurable. Therefore, if something were to happen to one party, the other would not face a substantial financial loss that would justify taking out an insurance policy.

On the other hand, relationships like parent and child, spouse and partner, and business partners are often perceived as having a clear insurable interest. Parents and children share a familial relationship that implies emotional and financial dependencies. Spouses or partners have shared financial responsibilities and life commitments that would incite financial repercussions in the case of one partner's loss. Business partners have a vested interest in each other due to shared investments and financial ties, which further magnifies the need for life insurance in case of an unt