What term describes the legal right to make changes to an insurance policy?

The legal right to make changes to an insurance policy is referred to as policy ownership. This concept encompasses the ability of the policyholder to modify various aspects of the policy, such as adjusting coverage amounts, changing beneficiaries, or even canceling the policy if necessary. Ownership signifies control over the policy and the rights that come along with it.

Other terms outlined in the choices serve different purposes in the context of insurance. Insurable interest refers to a requirement that a policyholder has a legitimate interest in the life or property insured, ensuring that there is a valid reason for obtaining coverage. Beneficiary designation pertains to the selection of individuals or entities that will receive the benefits upon the occurrence of an insured event, primarily in life insurance. Premium payment involves the financial obligation of the policyholder to pay for the coverage provided by the insurer but does not relate to the rights of ownership. Thus, policy ownership accurately captures the legal authority to amend the terms of an insurance policy.