Tennessee Insurance Practice Exam 2026 – All-in-One Resource for Exam Success!

The ability of a policy owner to modify a provision in their insurance contract is not typically viewed as a right, because insurance contracts are legally binding agreements that contain certain terms and stipulations agreed upon at the time of purchase. Once the policy is in effect, modifications usually require approval from the insurer, and this process may involve renegotiation or amendment procedures that are not guaranteed to the policy owner.

On the other hand, designating a beneficiary, converting a policy (such as switching from a term policy to a whole life policy), and accessing policy loans are recognized rights that policy owners generally possess. These rights empower policy owners to make decisions regarding their coverage, financial benefits, and the future direction of their policies without needing to seek approval for each action.