Which of the following is NOT an example of third party ownership of a life insurance policy?

Third-party ownership of a life insurance policy occurs when someone other than the insured has ownership rights. In this context, a scenario that illustrates borrowing money and creating a collateral assignment does not establish true ownership of the policy.

In the case of an insured borrowing money from a bank and making a collateral assignment, the insured remains the policy owner, and the bank's interest is merely a claim against the policy for the amount borrowed. The bank does not hold any ownership rights over the policy itself and is only using the policy as collateral to secure the loan. As such, this situation does not fit the definition of third-party ownership, where a different entity owns and controls the insurance policy itself.

The other options clearly depict situations of third-party ownership—where one party takes out the insurance policy for another party's benefit—making the choice involving collateral assignment the exception.