IIQE Paper 3 Introduction to Life Insurance question: life on the strength of a family relationship alone

Answer: C. a guardian insuring a 15-year-old in his care

Answer: a guardian insuring a 15-year-old in his care. Section 64A of the Insurance Ordinance gives a parent or guardian of a minor (a person under 18) an insurable interest in that minor.Why not the others:• a woman insuring her adult brother: A sibling relationship alone is not enough in Hong Kong; it may be in some U.S. jurisdictions.• a man insuring his 70-year-old father: An adult child has no statutory interest in a parent's life just because of the relationship.• a grandmother insuring her 25-year-old grandson: Grandparent relationships do not create an insurable interest on their own in Hong Kong.Watch out: Applying the U.S. position, where many family ties count, to Hong Kong, where only a spouse and a parent or guardian of a minor qualify.Rule: Hong Kong family-based interests: spouse (presumed) and parent or guardian of a minor under 18 (section 64A). Other relationships need a money interest.Source: IA Long Term Insurance (Paper III) Study Notes, 2022 Edition (8th ed., June 2022; for exams from 24 Oct 2022), 1.2.1(f), p. 1/4