Retirement and Other Insurance Concepts
A wife applies for and owns a policy on her husband's life, naming their child as beneficiary. What is this arrangement called?
Answer and explanation
Answer: C. Third-party ownership exists whenever the policyowner is not the insured. The owner holds all contractual rights, including the right to name and change the beneficiary.Source: NAIC Life Insurance Buyer's Guide — Policy ownership: owner, insured, and beneficiary as different persons
More retirement and other insurance concepts questions
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- What happens in a life settlement transaction?
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