Insurable Interest Growing Out of Other Business Relations

Numerous business relations, other than that of creditor and debtor, justify the taking of insurance by one person on the life of another. Thus, a surety on a bond, though no default on the bond has occurred, has an insurable interest in the life of the principal. Similarly, the holder of a property interest contingent upon another person reaching a certain age may protect himself against the loss of his contingent right through the death of that person before, attaining the prescribed age. The courts have even refused to hold that those furnishing funds for corporate enterprises have no insurable interest in the lives of the managers and promoters of said corporations; and it is stated that certain stockholders in the United States have taken out insurance on the lives of prominent financiers who were instrumental in financing and promoting the corporations whose stock they held. Among other important instances of lawful insurable interest may be mentioned the following: a tenant in the life of a landlord who possesses only a life interest in the premises, a partner in the life of a copartner, one party to a joint venture in the life of another party, and an employer in the life of an employee.