Question 4001 of 287 · Texas Life, Accident and Health Agent Exam

Third-party ownership of a life insurance policy means that

Exactly one answer is correct.

Athe owner is a person or entity other than the insured, such as a spouse or a business
Bthe beneficiary pays the premiums and receives dividends but has no ownership rights, once the underwriting file is complete
Cthe insurer is the owner and the insured holds only a certificate of coverage
Dthe policy is owned by the insured but all proceeds go to the insurer's trust fund

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Correct answer to question 4001

A: the owner is a person or entity other than the insured, such as a spouse or a business

Explanation

The owner holds all policy rights, including naming the beneficiary and borrowing. The owner must have an insurable interest in the insured when the policy is issued.

4002A life settlement is a transaction in which
4003In a contributory group life plan,
4004In a noncontributory group life plan, the employer pays the entire premium, and
4006A qualified retirement plan is one that
4007Which of these is an example of a nonqualified plan?
4008Key person life insurance is purchased by a business to

Third-party ownership of a life insurance policy means that

Correct answer to question 4001

Explanation

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