Question 91

Changes in beneficiary designation require consent from both parties.

A change in the beneficiary for an AD&D policy with an irrevocable beneficiary designation can only be made with the consent of both the policyowner and the beneficiary.

A) At the time of policy renewal

This option is incorrect because changes to the beneficiary designation are not limited to the time of policy renewal. An irrevocable beneficiary designation remains in force until the policyowner obtains consent from the beneficiary to make any changes, regardless of the policy renewal period.

B) When an absolute assignment is attached to the policy

This option is also incorrect. While an absolute assignment can affect ownership rights and beneficiary designations, it does not inherently provide a mechanism for changing the beneficiary without the irrevocable beneficiary's consent. Thus, it does not apply to the scenario described.

C) Upon the death of the current beneficiary

This option is incorrect as well. The death of the current beneficiary does not automatically allow the policyowner to change the beneficiary designation without following proper procedures. The policyowner can change the beneficiary only with the consent of the irrevocable beneficiary while they are alive.

D) With the consent of both the policyowner and the beneficiary

This option is correct. For a policy with an irrevocable beneficiary designation, any changes to the beneficiary can only be made if both the policyowner and the existing beneficiary agree to the change. This ensures that the rights of the irrevocable beneficiary are respected.

Conclusion

The correct answer, D, highlights the requirement for mutual consent in changing a beneficiary for an AD&D policy with an irrevocable designation. Options A, B, and C do not accurately reflect the process required under such policies, making D the only valid choice in this context. This emphasizes the importance of consent in maintaining the integrity of beneficiary designations.