Which of the following is TRUE of the conversion privileges for the insured in group life insurance?

The conversion privileges in group life insurance allow members of a group (such as employees in a company) to convert their group coverage into an individual policy when they leave the group or when the group policy terminates. The true statement regarding these privileges is that the option to name a new beneficiary can be exercised by the owner.

When an individual converts their group life insurance policy to a personal one, they typically have the right to establish a new beneficiary. This is an important aspect, as it allows the insured person to designate someone they prefer to receive the death benefit, ensuring their wishes are reflected in the policy.

Other options are not accurate in the context of typical conversion privileges. For example, conversion usually does not allow for changes to the coverage amount without proof of insurability, nor does it permit ownership changes or the transfer of the policy into a different type, such as an endowment. These features tend to remain consistent with the terms of the original group policy, emphasizing the specific rights attributed to the individual during the conversion process.