Which of the following is NOT a form of insurable interest?

Insurable interest is a fundamental principle in insurance, requiring that the policyholder has a legitimate interest in the preservation of the subject matter of insurance. This principle helps to prevent moral hazards and ensures that insurance contracts are bound by a legal relationship.

Ownership of property constitutes a clear form of insurable interest, as the owner has a financial stake in the asset and stands to lose if it is damaged or destroyed.

Loaning property also creates insurable interest since the lender has a vested interest in the collateralized property. If the property were to be lost or damaged, the lender could suffer financial loss.

Business partnerships establish insurable interest because partners have a shared stake in the success and continued viability of the business, which may include insuring business assets or key individuals within the partnership.

In contrast, a mutual agreement to share profits does not denote an insurable interest. This agreement might involve partnerships or joint ventures but lacks a direct financial risk linked to particular property or individuals. Therefore, it fails to satisfy the legal requirements for insurable interest, which must be tied to the possibility of financial loss resulting from a specific event affecting an insured item or person.