All of the following normally indicate the presence of insurable interest in the life of...

Definition of insurable interest in life insurance (Maryland context).

Under Maryland insurance principles, an insurable interest in the life of another exists when the policy owner would suffer a financial loss or certain types of recognized personal loss upon the insured’s death.

Maryland Insurance law requires that insurable interest must exist at the time the life insurance policy is issued.

Evaluate each option.

A. Maintaining a lasting friendship

Friendship alone does not create a recognized financial or legal loss upon death.

Maryland law does not recognize friendship, by itself, as sufficient insurable interest.

B. Being closely related by birth

Close blood relationships (such as parent-child or siblings) are presumed to have insurable interest under Maryland standards.

C. Being married

Spouses automatically have insurable interest due to shared financial obligations and dependency.

D. Co-signing a mortgage

This creates a direct financial interest, since one party would suffer a monetary loss if the other dies.

Conclusion.

Only friendship, without financial dependency or legal obligation, fails to establish insurable interest.