Theownership provisionin a life insurance policy specifies that the policyowner (who may or may not be the insured) holds all rights and privileges during the insured’s lifetime, including changing beneficiaries, borrowing against cash value, or surrendering the policy. This is standard in Oklahoma’s Insurance Code (Title 36 O.S. § 4001 et seq.). Beneficiaries have no rights until the insured’s death, and the insured’s family has no automatic rights unless designated as owners.
Option A: Incorrect. The insured has no ownership rights unless they are also the policyowner.
Option B: Correct. The policyowner holds all rights and privileges.
Option C: Incorrect. The insured’s family has no inherent rights unless they are the policyowner.
Option D: Incorrect. Beneficiaries have rights only after the insured’s death.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: General Knowledge – Life Insurance Provisions)., Oklahoma Insurance Department, Title 36 O.S. § 4001 et seq. (life insurance policy provisions)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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