How many parties can be involved in an insurance application?

In an insurance application, there can typically be four distinct parties involved. These include the applicant, the insured, the insurer, and potentially a third-party owner.

The applicant is the individual who fills out the application and seeks the insurance coverage. The insured refers to the person whose life is covered by the policy; this might be different from the applicant if, for example, a parent applies for insurance on a child. The insurer is the insurance company that provides the coverage and issues the policy. Lastly, there might be a third-party owner, which could occur when one person owns the policy on another person's life—for instance, a spouse or another family member.

This multi-party structure allows for flexibility in various insurance scenarios, such as those involving dependents, business partners, or other arrangements where one individual manages an insurance policy for someone else's benefit. This makes the involvement of four different parties the correct understanding of the insurance application process in this context.