Question 64

A policyowner CANNOT change the beneficiary if he has named an irrevocable beneficiary.

An irrevocable beneficiary cannot be changed by the policyowner without the consent of that beneficiary. This means that once a beneficiary is designated as irrevocable, the policyowner forfeits the right to make any alterations regarding that beneficiary.

A) a spouse.

Naming a spouse as a beneficiary is generally considered revocable unless specified otherwise. Therefore, changing a spouse as a beneficiary can be done at the policyowner's discretion, making this option incorrect in the context of the question.

B) a revocable beneficiary.

A revocable beneficiary can be changed at any time by the policyowner. This flexibility clearly indicates that having a revocable beneficiary does not restrict the policyowner's ability to change the beneficiary designation, thus making this option incorrect.

C) a permanent beneficiary.

The term "permanent beneficiary" is not a standard classification in insurance terminology. Typically, beneficiaries can be designated as revocable or irrevocable. Therefore, this option does not apply and is incorrect as it does not represent a valid beneficiary type affecting the policyowner's ability to change it.

D) an irrevocable beneficiary.

An irrevocable beneficiary is a designation that prevents the policyowner from changing the beneficiary without the beneficiary's consent. This characteristic is critical; it is the precise reason why the policyowner cannot make changes once an irrevocable beneficiary is named, making this option correct.

Conclusion

The correct answer is D, as an irrevocable beneficiary restricts the policyowner's ability to alter the beneficiary designation without the beneficiary's approval. Options A, B, and C do not impose such restrictions, thereby failing to address the question's premise regarding beneficiary changes.