Which of the following is NOT a common instance of insurable interest?

Insurable interest is a fundamental principle in insurance, which states that the policyholder must have a legitimate interest in the continued life or well-being of the insured. This requirement helps prevent insurance from becoming a form of gambling or wagering on someone's life.

In the context of the question, business partners demonstrate insurable interest because each partner has a vested interest in the other's life or health, as their business's success often hinges on both parties being alive and well. Blood relatives typically also exhibit insurable interest, as family members usually have emotional and financial stakes in each other's lives. Additionally, individuals have insurable interest in their own lives since they are the ones most directly affected by their health and well-being.

While close friends may care for each other, that relationship does not universally confer insurable interest in the same way as family or business partnerships do. Consequently, taking out a life insurance policy on a friend would usually not meet the insurable interest requirement unless there are specific financial implications involved, which are less common. Therefore, this option represents an instance that is not typically recognized as an insurable interest, making it the correct answer in this context.