Susan and Ann, close friends, took out insurance policies on each others life, each being the beneficiary

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Susan and Ann, close friends, took out insurance policies on each other’s life, each being the beneficiary of the other’s policy. When Susan died, the insurance company refused to pay the proceeds to Ann, claiming that she did not have an insurable interest in Susan’s life. Was the insurance company correct?
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Business Law Principles and Practices

ISBN: 978-1133586562

9th edition

Authors: Arnold J. Goldman, William D. Sigismond

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