Final answer:
The settlement options provision specifies how the proceeds of a life policy are handled. This provision gives beneficiaries choices on receiving benefits, such as lump-sum payments or annuities. The correct answer is 'A. Settlement options provision'.
Step-by-step explanation:
The manner in which the proceeds of a life policy are handled upon the insured's death or at the end of the policy is specified in the settlement options provision.
This provision allows the policy owner or the beneficiaries to choose how they would like to receive the death benefits. Options typically include lump-sum payments, annuities (payments over time), retaining the proceeds with the insurer at interest, or a combination of these.
While the assignment provision relates to transferring the policy's ownership, the grace period provision provides a timeframe within which the policyholder can pay an overdue premium without losing coverage. The entire contract provision states that the policy and any attached agreements constitute the entire contract between the insurer and policyholder.
If we go through the options listed in the question: A. Settlement options provision is the correct answer.