Third-Party Ownership Flashcards
1
Q
Third-Party Ownership
A
A policy owned by one person insuring the life of another person. The three parties involved in a third-party ownership are the policyowner, insured, and insurer. Examples of third-party ownership policies are:
A husband buying a policy on a wife
A parent buying a policy on one of their children
A business buying a policy on a key employee
A business partner buying a policy on another business partner
