Which statements about the owner-applicant of a life insurance policy are correct?

• A. I only.
• B. II only.
• C. Neither I nor II.
• D. Both I and II.

Answer: (A)

Ownership in a life policy is about who controls the contract, not necessarily who is covered. The owner-applicant holds the policy rights—things like naming or changing the beneficiary, assigning the policy, borrowing against cash value, and deciding settlement options. These rights can be exercised whether or not the owner is the person whose life is insured.

The insured is the person whose life is being insured, while the applicant is the person who completes and signs the application. These roles can be filled by different people or entities. For example, a parent may own and apply for a policy on a child, or a company may own and apply for a policy on a key employee. In such cases, the owner-applicant does not have to be the insured.

Therefore, the statement describing the owner-applicant’s control and rights is correct, while the idea that the owner-applicant must be the insured is not, which is why only the first statement is accurate.