Which of the following scenarios does not typically represent an insurable interest?

In the context of insurable interest, a person must have a legitimate interest in the continued life of the insured to take out an insurance policy on them. This is a fundamental principle in insurance law, ensuring that insurance serves its purpose of risk management rather than speculation.

When a friend insures another friend's life for profit, it does not reflect a recognized insurable interest. Insurable interest typically exists in relationships where individuals have a vested interest in each other’s well-being, such as familial bonds, business partnerships, or marital relationships. The profit motive in this scenario suggests that the friend is speculating on the life of the insured rather than looking to protect a genuine interest, which fails to meet the insurable interest criteria.

In contrast, parents, spouses, and business partners have a clear rationale for insuring one another's lives, as these relationships imply a mutual dependency and financial obligation, establishing a valid insurable interest.