Final answer:
Insurable interest is essential for a valid insurance contract; an airline insuring the lives of its passengers does not demonstrate insurable interest.
Explanation:
Insurable interest refers to having a financial stake in the continued existence of the insured person or property. In the context of insurance, it is necessary for a valid insurance contract to exist. An airline insuring the lives of its passengers does not have insurable interest as the passengers are not directly tied to the airline's financial well-being.
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