Which of the following individuals typically does not have an insurable interest in another’s life?

An individual typically does not have an insurable interest in another person's life if there is no significant financial relationship or emotional dependency that would result in a financial loss upon that person's death. In the case of a neighbor with whom one has no financial relationship, there is no vested interest in the well-being or life of that individual.

Insurable interest is a fundamental principle of insurance, allowing parties with a legitimate interest in the life of the insured to take out insurance policies. This principle ensures that individuals cannot take out insurance for strangers, as it could lead to unethical practices where one may benefit from the death of another without a direct relation.

In contrast, individuals like a spouse, business partner, and child typically have a direct financial or emotional connection that creates an insurable interest. For example, a spouse would likely experience financial loss from the death of their partner due to shared responsibilities and potential income loss. Similarly, a business partner has a vested interest in the continued presence of their partner for the business's success. A parent generally would also have an insurable interest in their child, reflecting the emotional bond and potential future financial responsibilities associated with caring for them.