Tennessee Insurance Practice Exam

Question: 1 / 400

Under which beneficiary designation are the rights of the policyowner most limited?

Revocable

Irrevocable

The most limited rights of the policyowner occur under an irrevocable beneficiary designation. This designation means that the policyowner cannot change or remove the beneficiary without their consent. Once an irrevocable beneficiary is named, they hold certain rights to the policy, such as having to be notified if the policy is altered or if the owner seeks to surrender the policy. This is in contrast to a revocable designation, where the owner retains the ability to change the beneficiary at any time without needing permission. Understanding this distinction is crucial, as it directly affects the level of control the policyowner has over the policy and its proceeds. In cases of contingent and primary beneficiaries, the policyowner maintains more flexibility and rights compared to when dealing with an irrevocable designation.

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Contingent

Primary

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