Pennsylvania Life and Health Insurance Exam Practice Question
An applicant for an insurance policy is presumed to have an insurable interest in his
Correct Answer: D
Rationale: An applicant for an insurance policy is presumed to have an insurable interest in their spouse because of the inherent financial and emotional dependency in a marital relationship. This means that the applicant would suffer a financial loss if their spouse were to pass away or suffer a loss, justifying the insurance coverage.
Options A, B, and C (employer, friend, neighbor) do not inherently imply a strong financial interest. While one might have some level of concern for a friend or neighbor, the legal concept of insurable interest typically does not extend to these relationships. An employer may have a vested interest in an employee's productivity, but this does not equate to insurable interest.
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