The ownership provision of a life insurance policy states that during the insured individuals lifetime,...

Theownership provisionof a life insurance policy under Pennsylvania Life Insurance law states that allrights and privilegesof the policy belong to thepolicyownerduring the insured individual’s lifetime. These rights include naming or changing beneficiaries, borrowing against cash value, assigning the policy, and surrendering the policy.

Pennsylvania-approved insurance study materials clarify that the policyowner may or may not be the insured. When the owner and insured are different individuals, the insured does not automatically have control over policy decisions. Beneficiaries also have no rights while the insured is alive unless designated as irrevocable.

The insured’s family likewise has no ownership rights unless specifically named as policyowners or irrevocable beneficiaries. Therefore, ownership rights rest exclusively with theowner only, making optionBthe correct and verified answer under Pennsylvania Life, Accident, and Health Insurance regulations.