A change of beneficiary request will not be effective unless which is true?

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Prepare for the Legal Aspect of Life Insurance Test. Enhance your understanding with multiple-choice questions. Each question provides detailed explanations to help you grasp the legal intricacies of life insurance.

Multiple Choice

A change of beneficiary request will not be effective unless which is true?

Explanation:
A change of beneficiary is blocked when an irrevocable beneficiary has been named. An irrevocable beneficiary has vested rights, and the policyowner cannot change or remove that designation without the beneficiary’s written consent. Therefore, the change will not be effective unless there is no irrevocable beneficiary in place (or the irrevocable beneficiary consents). That is why the statement addressing the presence or absence of an irrevocable beneficiary is the determining factor. In practice, changes are possible only if the designation is revocable or the necessary consent is obtained, and the insurer records the change accordingly.

A change of beneficiary is blocked when an irrevocable beneficiary has been named. An irrevocable beneficiary has vested rights, and the policyowner cannot change or remove that designation without the beneficiary’s written consent. Therefore, the change will not be effective unless there is no irrevocable beneficiary in place (or the irrevocable beneficiary consents). That is why the statement addressing the presence or absence of an irrevocable beneficiary is the determining factor. In practice, changes are possible only if the designation is revocable or the necessary consent is obtained, and the insurer records the change accordingly.

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