In which of the following instances does insurable interest exist in life insurance?

Insurable interest is a fundamental principle in life insurance that requires the policyholder to have a legitimate interest in the continued life of the insured. This concept helps prevent insurance from being used as a form of gambling or speculation.

In the context of the correct choice, having insurable interest in one’s own life is straightforward, as individuals obviously have a vested interest in their survival. Additionally, blood relatives typically have a special bond that creates an inherent interest in each other's well-being; their lives are interconnected both emotionally and financially. Furthermore, business partners often have financial stakes in each other's lives as the death of a partner could severely impact the business’s operations and financial health. This collection of relationships exemplifies situations where insurable interest is clearly established, making it appropriate for life insurance coverage.

Other options do not clearly establish insurable interest in the same way. While friendships or acquaintances may share emotional bonds, they do not usually involve the financial aspects that create insurable interest. Corporate stakeholders might have an interest in the company’s performance but do not typically possess direct insurable interest in the lives of individual employees or officers unless specified. In-laws and their children may have supportive relationships; however, these are typically not recognized as creating insurable interest in a life insurance