63. The change of beneficiary provision states the policyowner has the right to change the beneficiary unless the beneficiary is
Answer: B
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 the beneficiary. This provision protects the rights of the irrevocable beneficiary.
A) uninsurable.
An uninsurable individual refers to someone who is unable to obtain insurance coverage due to various risk factors. This status does not inherently affect the policyowner's ability to change the beneficiary in a life insurance policy.
B) irrevocable.
An irrevocable beneficiary is one whose designation cannot be changed without their consent. This means that once a beneficiary is named as irrevocable, the policyowner retains no right to alter that designation, which is why this choice accurately reflects the provision in question.
C) contingent.
A contingent beneficiary is a secondary beneficiary who is entitled to the policy proceeds only if the primary beneficiary is unable to collect. The presence of a contingent beneficiary does not restrict the policyowner’s ability to change the primary beneficiary.
D) deceased.
If a beneficiary has passed away, the policyowner may need to designate a new beneficiary, but this does not restrict their ability to change the beneficiary. In fact, the death of a beneficiary often facilitates the need for a change.
Conclusion
The irrevocable status of a beneficiary is the key factor that prevents the policyowner from making changes. Other options like uninsurable, contingent, and deceased do not impose such restrictions, confirming that the correct answer is B. The nature of irrevocable beneficiaries is essential in understanding the rights of policyowners in insurance contracts.