Life Insurance Policy Provisions, Options, and Riders
Who exercises the rights a New York life policy confers, where the owner is not the insured?
Answer and explanation
Answer: A. The rights in the contract, such as changing the beneficiary, taking a loan, and surrendering the policy, belong to the owner. The insured supplies the life covered, the beneficiary has an expectancy until the insured dies, and the insurer is the promisor rather than a holder of the owner's rights.Source: N.Y. Ins. Law § 3203 — 3203, Ownership rights in the contract
More life insurance policy provisions, options, and riders questions
- An owner wants to replace a named irrevocable beneficiary with someone else. What additional requirement applies?
- Does the grace period in section 3203(a)(1) apply to the first premium?
- How do reduced paid-up and extended term differ in what each keeps from the original policy?
- How does a cost of living (COLA) rider adjust policy coverage over time?
- How does a joint and survivor life income differ from a joint life income?
- How does a long-term care (LTC) rider attached to a life policy fund care expenses?
621 New York questions like this one.
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