New Jersey Life Insurance Exam Practice Question
All of the following are examples of third-party ownership EXCEPT
Correct Answer: C
Rationale: Third-party ownership involves a situation where someone other than the insured owns the insurance policy. Key Person insurance (A) is taken out by a business on key employees, making it a third-party ownership example. Collateral assignment (B) refers to using a policy as collateral for a loan, which also involves a third party. Juvenile policies (D) are typically owned by parents or guardians for their children, again fitting the third-party ownership model. In contrast, a primary beneficiary (C) is the individual designated to receive benefits, not an owner, thus not an example of third-party ownership.
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