Final answer:
The policyowner can request changes in premium payments, face value, loans, and policy plans in an insurance policy. When an insurance company charges a group-wide premium without discrimination based on specific risks, it may face adverse selection, leading to potential losses.
Step-by-step explanation:
In life insurance, the policyowner has the rights to request changes in premium payments, face value, loans, and policy plans. Therefore, the correct answer is b) Policyowner. Insurance contracts typically provide the policy owner with the authority to make various changes and adjustments to the policy.
Regarding actuarial fairness, when an insurance company charges an actuarially fair premium to a group as a whole, rather than to each group separately based on specific risk factors like family cancer histories, it faces the risk of adverse selection. If the premium is set for the average risk of the group without considering individuals' higher risks, it may result in losses for the company as higher risk individuals will be more likely to buy the insurance while lower risk individuals may opt-out, perceiving the insurance to be a bad deal for them.