Under California Insurance Code Section 10110, every person has an insurable interest in the life of all of the following EXCEPT:
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Why C is correct
Section 10110 grants an insurable interest in one's own life, in persons on whom one depends for education or support, in persons under a legal obligation to pay money or perform services that death could delay, and in persons upon whose life a vested estate or interest depends. Mere admiration of a public figure creates no legal or financial relationship and does not establish an insurable interest. The statute requires a demonstrable relationship that would cause a financial or support-related loss upon death, and celebrity fandom simply does not meet that standard under California law.
Why the other options are wrong
- A) Section 10110(b) expressly grants an insurable interest in any person on whom the insured depends wholly or in part for education or support. A dependent child or spouse therefore falls squarely within the statutory list, so this is a correct statement and not the exception being sought.
- B) Section 10110(c) expressly covers any person under a legal obligation to the insured for the payment of money or for services, the performance of which death or illness might delay. A debtor is therefore a person in whom the creditor has an insurable interest under the statute.
- D) Section 10110(d) expressly grants an insurable interest in any person upon whose life an estate or interest vested in the insured depends. Where the insured's inheritance or business interest hinges on another person's life, that relationship is recognized as an insurable interest.
Memory hook
10110 = self, supporters, debtors, estate-links. Admiration is not insurable interest.