17. Which of the following is NOT a right of the life insurance policyowner?
Answer: C
C) Revoke an absolute assignment.
Revoking an absolute assignment is not a right of the life insurance policyowner, as once an absolute assignment is made, the rights to the policy are fully transferred to the assignee, and the policyowner cannot reclaim those rights unilaterally.
A) Select and change a beneficiary.
Selecting and changing a beneficiary is a fundamental right of the life insurance policyowner. Policyowners have the authority to designate who will receive the death benefit and can make changes to this designation as needed, as long as the policy permits such actions.
B) Borrow from the cash values.
The policyowner typically has the right to borrow against the cash values accumulated in a permanent life insurance policy. This right allows the policyowner to access funds while the policy remains in force, subject to repayment and interest considerations.
D) Assign or transfer the policy.
A life insurance policyowner has the right to assign or transfer the policy, which means they can designate another party as the new owner of the policy. This right is commonly exercised for various financial planning purposes, including estate planning or transferring ownership to a trust.
Conclusion
In summary, the right to revoke an absolute assignment is not held by the life insurance policyowner, making option C the correct answer. All other options—selecting a beneficiary, borrowing from cash values, and assigning the policy—are established rights that policyowners possess, illustrating the comprehensive control they have over their policies unless explicitly altered by an assignment.