If the beneficiary designation is revocable, the majority rule is that the policyowner can assign the life insurance policy

• A. only after either obtaining the beneficiary's consent or revoking the beneficiary designation.
• B. only after revoking the beneficiary designation.
• C. only after obtaining the beneficiary's consent.
• D. without the consent of the beneficiary.

Answer: (B)

Revocable designation means the policyowner retains control over who is named as beneficiary and can change or revoke that designation at any time without the beneficiary’s consent. Because ownership of the policy rests with the policyowner, transferring (assigning) ownership is a unilateral action the owner can undertake even with a revocable beneficiary designation in place. The beneficiary would not impede that transfer, and if the new owner wants to adjust who is the beneficiary later, they can do so since the designation remains revocable. The only time consent or revocation would be required is if the designation were irrevocable, in which case the beneficiary’s consent would be necessary to change the beneficiary or to assign. So, with a revocable designation, the policyowner can assign the policy without the beneficiary’s consent.