Policy Riders, Provisions, Options, and Exclusions
A policy insures Jordan's life, but Casey is the policyowner. Who generally controls beneficiary designations and permitted policy changes?
Answer and explanation
Answer: D. The owner controls the life policy and may exercise rights such as naming beneficiaries, making permitted changes, accessing cash values, and changing ownership. The owner and insured can be different people.Source: National Association of Insurance Commissioners — Life Insurance Beneficiaries: Per Capita vs. Per Stirpes — Parties to a life insurance policy: owner controls the policy
More policy riders, provisions, options, and exclusions questions
- What condition must be satisfied before a waiver of premium rider waives the policyowner's premium obligations?
- What distinguishes a collateral assignment from an absolute assignment of a life policy?
- What does a life policy's suicide provision generally limit?
- What does an accelerated death benefit provide when its qualifying conditions are met?
- What does an accidental death benefit rider generally provide when the insured dies from a covered accident?
- What does reinstatement do to an eligible lapsed life policy?
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