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>One of my family members had a friend who was apparently a crazy driver. He drove a delivery truck so a bunch of the driver's friend (including my family membe
by SilasX 7y ago
>One of my family members had a friend who was apparently a crazy driver. He drove a delivery truck so a bunch of the driver's friend (including my family member) took out a life insurance policy on him (driver). I didn't even realize you could do this but apparently you can.
It's generally restricted, since it can incentivize killing them to collect the money. To life-insure anybody you have to convince the insurer that you have an "insurable interest" in their life. That's easy if they're a breadwinner/caretaker in your family, and you could also show it if they were e.g. critical to your business (edit: or had lent them money). I'd be interested to know what the justification was in that case.
Insurers really try to make sure that the payout isn't so high that you want the insured event to happen ("moral hazard").
- alexpotato 7y ago> I'd be interested to know what the justification was in that case. I should have pointed out that this was back in the mid-1950s when regulations were probably a lot more lax than they are today.
- SilasX 7y agoHm, I think the "insurable interest" check is more of a standard practice to protect against being exploited by criminals and less of an "oh man, we'd love to do that but for those pesky regulations". Still, if I had to guess, I'd say it's that they don't look too closely if it's a close-enough family member that has a job.