According to the Insurance: Conduct of Business sourcebook (ICOBS), how is a commercial customer defined?

The definition of a commercial customer, according to the Insurance: Conduct of Business sourcebook (ICOBS), is indeed a customer who is not classified as a consumer. This definition is key in understanding the distinction between commercial and consumer clients within the insurance context.

In this framework, a consumer is typically an individual purchasing insurance for personal use, while a commercial customer engages with insurance products in a business capacity. This classification matters because it affects regulatory requirements, protections, and the obligations insurers have towards different types of customers. By defining a commercial customer as anyone who does not fit the criteria of a consumer, ICOBS provides clarity for businesses and insurers in their dealings and allows for the application of specific regulations pertaining to business interactions.

Other options, while they might reference commercial activity or thresholds, do not encapsulate the broad definition outlined in ICOBS. They are too restrictive or specific, not accurately representing the overall distinction made in the regulations. Thus, the correct identification of a commercial customer as someone who is not a consumer lays the foundational understanding required for all parties involved in the insurance process.