Question

Cynthia and Brian were friends. Brian was a dare devil. Because of his antics, Cynthia thought that Brian wasn't long for this life. Cynthia purchased a life insurance policy on Brian's life. Subsequently, Brian was killed in a car accident. Since Cynthia and Brian were friends, Cynthia had an insurable interest in his life and will be entitled to the insurance proceeds.

Answer 1

Cynthia had an insurable interest in Brian's life as they were friends, so she will be entitled to the insurance proceeds upon his death.

Step-by-step explanation:

Based on the scenario provided, Cynthia had an insurable interest in Brian's life since they were friends. Insurable interest refers to a legal principle that states an individual must have a financial interest in the life or well-being of another person in order to purchase a life insurance policy on their life. In this case, Cynthia purchased a life insurance policy on Brian's life and would be entitled to the insurance proceeds upon his death.

Answer 2

False

Step-by-step explanation:

Cynthia is not entitled to any compensation or insurance proceeds just because she took a life insurance on Brian. The only person who can claim Brian's insurance proceeds is whoever Brian named as beneficiary.