Discuss Virginia Insurance Virginia Life, Annuities, And Health Insurance Examination Series 1101 Exam Topic 6 Question 12

All of the following normally indicate the presence of insurable interest in the life of another person EXCEPT:

AMaintaining a lasting friendship with the other person

BBeing closely related to the other person by birth

CBeing married to the other person

DCo-signing a mortgage with the other person

Suggested Answer: A

Insurable interest exists when an individual stands to suffer a financial loss or hardship if another person dies or is injured. Insurable interest is typically present when one is closely related to the person (e.g., spouse, parent, or child) or has a financial relationship with them (e.g., co-signing a mortgage). While maintaining a lasting friendship may suggest emotional interest, it does not typically meet the financial criteria for insurable interest unless there is a direct financial loss involved.

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12 comments · newest first

Melvin 2 months ago

Definitely A. Co-signing a mortgage shows financial interest, unlike just being friends.

Jesusita 2 months ago

I agree, A seems right. Relationships by blood or marriage matter more.

Asha 2 months ago

I think the answer is A. Friendship isn't enough for insurable interest.

Shelba 2 months ago

I disagree, friendship can mean a lot in these cases!

Kayleigh 2 months ago

A is definitely not a valid reason for insurable interest.

Iluminada 2 months ago

Wait, really? I thought co-signing meant you had some interest!

Felice 3 months ago

Totally agree, D doesn't show insurable interest like the others.

Erick 3 months ago

I think D is the right answer.

Daisy 3 months ago

I’m leaning towards A as well, but I could be wrong. It’s tricky because friendships can be significant too, right?

Marget 3 months ago

I feel like I’ve seen a similar question before, and I think the answer might be A, since friendship isn't as strong as family ties.

Lucille 3 months ago

I think being married or closely related definitely shows insurable interest, but I'm not sure about co-signing a mortgage.

Timothy 4 months ago

I remember studying insurable interest, but I'm not entirely sure if maintaining a friendship counts as a strong enough connection.

Virginia Insurance Virginia Life, Annuities, and Health Insurance Examination Series 1101 Exam - Topic 6 Question 12 Discussion