Who is the person that has the right to exercise rights and privileges outlined in a policy?

The correct choice is the policyowner, as this individual possesses the legal rights and privileges associated with the insurance policy. The policyowner is responsible for making decisions regarding the policy, such as naming beneficiaries, making premium payments, and filing claims. This person has the authority to amend the policy and has the ultimate control over its provisions.

In contrast, while the policyholder might seem synonymous with the policyowner, the distinction can sometimes occur in specific contexts, such as when the policyholder is a different entity (e.g., an employer holding a group policy). Beneficiaries are individuals or entities designated to receive benefits from the policy in the event of a claim, but they do not have rights to manage or modify the policy itself. The insurer, on the other hand, is the company providing the coverage but does not have rights to the policy's provisions or decisions made by the policyowner. Thus, the policyowner is the individual entitled to exercise the rights and privileges outlined within the policy.