In which scenario might insurable interest exist without economic interest?

Insurable interest is a fundamental principle in insurance law that ensures an individual or entity has a stake in the insured party or property that justifies their insurance purchase. This principle typically requires some form of economic interest, such as financial loss or gain, but it can extend beyond pure economic interests.

The relationship between a husband and a wife exemplifies a scenario where insurable interest can exist independently of economic interest. In matrimonial law, spouses have an inherent interest in each other's well-being. This relationship is rooted in emotional and familial ties rather than direct financial implications. Thus, one spouse can take out an insurance policy on the other, reflecting an insurable interest based on their mutual responsibilities and care, even if there is no immediate or quantifiable economic stake.

In contrast, the other relationships mentioned are closely tied to economic stakes. For example, in employer-employee relationships or between business partners, there exist financial interests tied to the employment or business operations, thus making economic interest a critical component of insurable interest. Similarly, while parents often have emotional concerns for their children, there are also tangible economic implications when it comes to their upbringing and welfare, particularly considering education and healthcare costs.

Therefore, the relationship between a husband and wife distinctly illustrates how insurable interest