1 Alex owns a house and has an elderly third cousin living with him. Alex decides he needs fire insurance on the house and a life insurance policy on his third cousin to cover funeral and other expenses that will result from his cousin's death. Alex takes out a fire insurance policy from Ajoy Insurance Company and a ten thousand dollar life insurance policy from Beta Insurance on his third cousin. Six months later, Alex sells the house to John and transfers title to him. Alex and his cousin move into an apartment. With two months remaining on the Ajax policy, a fire totally destroys the house; at the same time Alex's third cousin dies. Both insurance companies claim they have no liability under the insurance contracts, as Alex had no insurable interest, and tender back ( return) the premiums. Discuss their claims