Sun Life Assurance Co. of Canada v. U.S. Bank National Ass'n

POSNER, Circuit Judge.

A common law principle that so far as we know is in force in every state of the United States forbids a person to own an insurance policy that insures someone *656else’s life unless the policy owner has an insurable interest in that life. Ohio National Life Assurance Corp. v. Davis, 803 F.3d 904, 907-08 (7th Cir. 2015). So you are allowed to own an insurance policy on your spouse’s life because the death of the spouse is likely to impose costs on you, but you cannot own an insurance policy on the life of a stranger who you happen to know is in poor health and likely to die…