Which concept refers to proof of ownership of an insurance policy when certain rights are exercised?

Which concept refers to proof of ownership of an insurance policy when certain rights are exercised?

• A. Annuity
• B. Incidents of ownership
• C. Dower
• D. Gross value

Answer: (B)

Incidents of ownership are the rights that demonstrate who truly controls a life insurance policy. When the owner can do things like change the beneficiary, borrow against the policy’s cash value, assign the policy, or surrender it, those exercised rights prove ownership for legal and tax purposes. That’s why this term best fits the idea of proof of ownership when rights are exercised. The other terms don’t describe ownership proof: an annuity is a payout contract, dower is a spouse’s marital rights, and gross value is a financial measure, not a concept about proving ownership through exercised rights.

Incidents of ownership are the rights that demonstrate who truly controls a life insurance policy. When the owner can do things like change the beneficiary, borrow against the policy’s cash value, assign the policy, or surrender it, those exercised rights prove ownership for legal and tax purposes. That’s why this term best fits the idea of proof of ownership when rights are exercised. The other terms don’t describe ownership proof: an annuity is a payout contract, dower is a spouse’s marital rights, and gross value is a financial measure, not a concept about proving ownership through exercised rights.