Life & Health Insurance Practice Exam 2026 – Your All-in-One Guide to Exam Success!

When a life insurance policy is purchased by a parent for a minor child, the situation does not require the child’s consent because minors are not legally capable of entering into contracts. The parent acts as the policyowner, managing the policy and making decisions on behalf of the child until they reach the age of majority. This is a common practice in insurance, where parents secure life insurance for their children to provide financial protection in case of an unfortunate event.

In contrast, other scenarios presented require the insured's consent because they involve adults who possess legal rights over whether or not they want to be insured. In those cases, buying a policy without the insured's knowledge or consent violates personal rights and could potentially be seen as unethical or illegal. It’s crucial for policyholders to understand the implications of the policies they purchase and the consent of the insured is an essential component of that agreement. Thus, the situation where a policy is purchased by a parent for a minor is distinct because of the legal provisions around minors and consent.