Final answer:
Third-Party Ownership refers to a life insurance policy owned by one person but insuring the life of another, common in business applications.
Step-by-step explanation:
The best description of Third-Party Ownership in the context of life insurance is D. A policy owned by one person insuring the life of another person. This is often used in business settings where a company might take out a life insurance policy on a key employee, thus the company is the policy owner and the key employee is the insured.
This is different from a situation where an individual directly purchases insurance for themselves or when employment-based insurance is provided through an employer.