DeMario was turned down when he attempted to buy a life insurance policy on his former Introduction to Business instructor. The most likely reason the insurance company turned down his attempt to insure the life of his former instructor was that
A) the chance of the loss could not be measured.
B) he did not have an insurable interest in the instructor's life.
C) the instructor had already taken out a policy.
D) the loss would not be accidental.

Question

Quizplus · Accepted Answer

In order for a risk to be insurable, the policyholder must have an insurable interest. This means that the policyholder must be at risk to suffer an economic loss. Though DeMario probably would feel very sad at the demise of his instructor, nothing in the question suggests he would suffer an economic loss.

DeMario Was Turned Down When He Attempted to Buy a Life