Question

An insured may assign up to ______ of policy ownership under an individual life insurance policy.

1) 10%
2) 25%
3) 50%
4) 100%

Answer 1

An individual can assign up to 100% of a life insurance policy's ownership to another party, which is separate from the concept of coinsurance, where costs are split between the insured and insurer.

Step-by-step explanation:

An insured may assign up to 100% of policy ownership under an individual life insurance policy. This means the policy owner has the right to transfer all rights and benefits of their life insurance policy to another party should they choose to do so. In contrast, coinsurance is a different concept where an insurance policyholder pays a percentage of a loss, and the insurance company pays the remaining cost.