Tom, Leanne, and Rahini carried on business together in partnership. Arrangements were made whereby each partner held a policy of life insurance on the other partners, and were the beneficiaries named in the policies. Several years later, Tom murdered Leanne. Neither Tom nor Rahini had an insurable interest in Leanne's life.

Question

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In a partnership, each partner has an insurable interest in the life of the other partners because the death of any partner can affect the financial stability and operations of the partnership.

Tom, Leanne, and Rahini Carried on Business Together in Partnership