25. The change of beneficiary provision states that the policyowner has the right to change the beneficiary UNLESS the beneficiary is
Answer: D
The policyowner cannot change the beneficiary if the beneficiary is irrevocable.
An irrevocable beneficiary designation means that the policyowner cannot change the beneficiary without the consent of that beneficiary. This provision protects the rights of the irrevocable beneficiary, ensuring they receive the policy benefits.
A) Uninsurable.
An uninsurable beneficiary refers to someone who has been determined to be uninsurable by the insurance company, typically due to health concerns. This designation does not prevent the policyowner from changing the beneficiary, making this option incorrect.
B) Power of attorney.
A power of attorney is a legal document that allows one person to act on behalf of another, but it does not relate to the beneficiary status in an insurance policy. Having a power of attorney does not restrict the policyowner’s ability to change the beneficiary, thus making this option incorrect.
C) Contingent.
A contingent beneficiary is someone who would receive the benefits if the primary beneficiary is unable to do so. The policyowner retains the right to change a contingent beneficiary without limitation, making this option incorrect as well.
D) Irrevocable.
An irrevocable beneficiary cannot be changed by the policyowner without their consent. This designation provides security to the beneficiary, ensuring they will receive the policy benefits, and thus is the correct answer.
Conclusion
The concept of an irrevocable beneficiary is crucial in insurance policies, as it ensures that the named beneficiary has guaranteed rights to the benefits. In contrast, the other options presented do not impose such restrictions on the policyowner’s ability to change beneficiaries, confirming that option D is the only correct choice.