Which of the following is NOT a factor in determining Competent Parties?

Insurable interest is a fundamental concept in insurance that pertains to the relationship between the insured and the insured item or person, which must exist at the time the policy is obtained. While it is essential for the validity of an insurance contract, it does not directly relate to the competency of parties entering into the contract. Competent parties must have the mental and legal capacity to enter into binding agreements.

The age of the applicant, mental capacity at the time of signing, and intoxication levels during signing are all crucial factors in establishing whether parties are competent to enter into a contract. For instance, individuals must generally be of legal age to form a contract, and their mental capacity must not be compromised at the time of agreement, whether due to mental illness or intoxication. Thus, these factors are directly related to the competency of the parties involved in the insurance contract.

In summary, while insurable interest is vital for an insurance contract's validity, it is not a criterion that assesses the competency of the parties involved. This distinction is what makes it the correct choice in the context of determining competent parties.