Who does not have an insurable interest in a life insurance policy?

An insurable interest in a life insurance policy means that the policyholder has a legitimate interest in the continued life of the insured, often related to financial dependence or obligations. The concept is critical in life insurance to prevent moral hazard and ensure that the policyholder has a genuine reason for obtaining coverage on someone's life.

The policyholder typically has an insurable interest in themselves or in those with whom they have a close financial or personal relationship, such as a spouse or business partner. The person who is being insured is often connected by these types of relationships, making it meaningful for the policyholder.

In the case of a best friend, unless there is a significant shared financial obligation or dependency (which is rarely the case), the policyholder does not have an insurable interest. In most situations, friendships do not create an insurable interest, as they lack the financial stakes or legal obligations that characterize relationships like marriage or partnership in business. Therefore, the best friend does not meet the criteria for insurable interest, making them the correct answer.