Final answer:
In which of the following relationships would there NOT be an insurable interest? The answer is D. Business owner to business customer, because typically there is no financial dependence that would cause the business owner a loss due to the death or disability of the customer.
Step-by-step explanation:
In the context of insurance, an insurable interest must exist at the time of the contract's inception. This means that the policyholder would suffer a genuine loss or hardship if the event insured against were to occur. There are typical scenarios where insurable interest is presumed:
- A parent to a child
- A business partner to another business partner
- A brother to a sister
However, one relationship where there is generally no insurable interest is:
- A business owner to a business customer
This is because the business owner typically does not stand to suffer a financial loss if something were to happen to a customer, as customers generally don't have contractual obligations that tie their personal well-being to the business's financial health. The relationship does not demonstrate a direct monetary loss to the business owner in the event of the customer's death or disability. Therefore, the answer is D. Business owner to business customer.