How does insurable interest arise, if at all. when an insurer arranges reinsurance?

How does insurable interest arise, if at all. when an insurer arranges reinsurance?
A . Insurable interest does not arise.
B. Insurable interest is created by statute.
C. The insurer is considered to have insurable interest by virtue of its liability to pay claims.
D. The policyholder is considered to have assigned the insurable interest to the insurer.

Answer: C