Flashcards Studio

Hopewell Enterprises, a family-owned design firm, takes out a life insurance policy on the life of its key designer, Ana Morales, with Hopewell Enterprises as owner and sole beneficiary. Ana is not related to the firm by blood or marriage and has no ties to the firm beyond her employment. The policy is issued for 20 years and premium payments are made by the firm.   (a)Does Hopewell Enterprises have insurable interest in Ana Morales’s life at the time the policy is issued? (b)If no insurable interest exists, explain the consequences for the policy and any claim.