The settlement option that allows proceeds to remain with the insurer and the earnings to...

Theinterest onlysettlement option allows life insurance proceeds to remain with the insurer, with theearnings(interest) paid to the beneficiary periodically (e.g., monthly). The principal remains intact until another settlement option is chosen or the proceeds are withdrawn, as outlined in Oklahoma’s life insurance regulations (Title 36 O.S. § 4001 et seq.).

Option A: Correct. The interest only option pays earnings to the beneficiary while retaining the proceeds.

Option B: Incorrect. Lump sum pays the entire proceeds at once.

Option C: Incorrect. Fixed period pays principal and interest over a set time.

Option D: Incorrect. Fixed amount pays a set amount until proceeds are exhausted.