Comprehensive and Detailed Step by Step Explanation:
Applicant: The person who applies for the policy. Here, Kim applies → Kim is the applicant.
Insured: The person whose life is covered. It says “on Kim’s own life” → Kim is the insured.
Beneficiary: The person who receives the death benefit. Kim names Chris to receive it → Chris is the beneficiary.
Policyowner: Usually the applicant/insured when you buy insurance on yourself (unless ownership is assigned differently). Here, Kim applies on Kim’s life → Kim is typically the policyowner.
Why B is correct: Kim is the policyowner and applicant.
Maryland reference (communication / misrepresentation): Producers must accurately describe roles/rights (owner rights, beneficiary rights). Misstating who controls the policy could be misleading disclosure (misrepresentation).
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