Final answer:
Pulse Corp. most likely retains both title and insurable interest in the goods since they were destroyed by fire before being transferred to the buyer or a carrier, meaning risk of loss had not yet passed to Star.
Step-by-step explanation:
In this case, the issue is regarding the transfer of title and insurable interest in goods from the seller (Pulse Corp.) to the buyer (Star). According to the Uniform Commercial Code (UCC), which governs sale of goods in the United States, title passes to the buyer at the moment the seller has completed their performance with respect to the physical delivery of the goods unless the parties have agreed otherwise. Since Pulse Corp. had already identified the goods to be shipped to Star, title would typically pass to Star at that point. However, insurable interest is presumed to exist as long as the party bears the risk of loss. If the contract does not specify specifics of risk of loss (which is not mentioned in the question), risk of loss would generally pass to the buyer either upon receipt of the goods or if the seller is a merchant, when the goods are placed in the possession of the carrier. As the goods were destroyed by a fire in Pulse Corp.'s warehouse before delivery to Star or a carrier, Pulse Corp. likely still has both title and insurable interest because the risk of loss had not yet transferred to Star.
Therefore, the correct statement with respect to the goods would be: D. Pulse has title and an insurable interest.