Emily155385idn
Answered

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A life insurance contract that is under third-party ownership:

A. Can be transferred to other insurance companies.
B. Must be single-premium life.
C. Is written on an insured who is not the policyowner.
D. Is written on more than 2 people.

Sagot :

GinnyAnsweridn

Final answer:

Third-party ownership in life insurance involves a third party receiving benefits upon the insured person's death, impacting costs for insurers.


Explanation:

Third-party ownership in a life insurance contract means that the policyowner is not the insured individual. This arrangement allows a third party to receive the benefits upon the death of the insured person.

It is common in the life settlements industry for healthier, elderly policyholders to transfer their policies to third parties who then pay the premiums and collect the benefits. This practice can impact life insurance costs for insurers.

Businesses buying life insurance policies in third-party ownership scenarios are unlikely to let the policies lapse, ensuring they collect the benefits when the insured individuals pass away.


Learn more about Life insurance contract ownership here:

https://brainly.com/question/32293178


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