Utah Life Producer Practice Exam

The owner of a life insurance policy is the individual or entity that has the legal rights to the policy and its benefits. This owner can make significant decisions related to the policy, such as altering the coverage, borrowing against the cash value, or designating beneficiaries.

This ownership means that the policyholder retains control over the policy, can manage payments, and can benefit from any proceeds upon the insured's death. Ownership is critical in determining who has the authority to make changes and how benefits are distributed.

In contrast, the insurance company is the entity that provides the coverage and manages the policy, but it does not have ownership rights. The beneficiary is the person designated to receive the death benefit but does not have any control over the policy itself until the insured's passing. The agent who sells the policy acts on behalf of the insurance company and is involved in the sale and servicing of the policy, but they do not hold ownership rights either. Thus, the correct understanding of the relationship between these parties is fundamental to grasping how life insurance policies operate.