Which factor is typically not associated with insurable interest?

Insurable interest is a fundamental principle in insurance that requires the policyholder to have a legitimate stake in the insured’s life or the subject matter of the insurance. This concept ensures that the policyholder will suffer a financial loss or hardship if the insured event occurs, which prevents insurance from being used as a gambling mechanism or for unethical purposes.

Among the provided choices, the concept of a beneficiary's friendship does not generally constitute insurable interest. While friendship may imply some emotional connection, it does not equate to a financial dependency or vested interest that could result in a loss. Insurable interest usually involves factors that can be quantified financially, such as financial dependence, family relationships, or shared business interests, as these relationships can result in a significant financial impact if an insured event occurs, such as death.

In contrast, financial dependence involves a scenario where one individual relies on another for financial support, typically found in parent-child or spousal relationships. Family relationships, by their nature, create insurable interest because there is often an inherent financial connection, such as dependents relying on the income of the insured. Shared business interests imply that the parties involved have a financial stake in the viability and success of a shared venture, which also forms a valid basis for insurable