Walmart established a trust to serve as the legal holder of life insurance policies insuring the lives of its employees and naming itself as beneficiary. Walmart’s policies insured the lives of all employees with service time sufficient for enrollment in the Walmart Associates’ Health and Welfare Plan. Walmart’s program was intended to be “mortality neutral”; the death benefits paid to Walmart upon employees’ deaths would fund employee benefit plans and death expenses. 

Douglas Sims was a Walmart employee until his death and was insured under a policy. After his estate discovered the existence of this policy, it sought to recover the policy benefits. Specifically, it contended that Walmart violated the insurable interest doctrine because the company lacked a sufficient financial interest in the lives of its rank-and-file employees. Did Walmart have an insurable interest in the life of Sims? Explain.