Question 25

Revoking an absolute assignment is NOT among the rights of the Life Insurance Policyowner.

A life insurance policyowner does have the right to assign or transfer the policy, borrow from the cash values, and select or change a beneficiary. However, revoking an absolute assignment is not a right typically granted to the policyowner.

A) Assign or transfer the policy.

This option is incorrect as policyowners have the right to assign or transfer their policy to another individual or entity. This is a common right that allows policyowners to manage their policy in accordance with their financial needs and wishes.

B) Borrow from the cash values.

This option is also incorrect because policyowners are permitted to borrow against the cash values of their life insurance policy. This right provides financial flexibility and can be an important feature for policyowners needing access to funds.

C) Select and change a beneficiary.

This option is incorrect as well since policyowners can select and change the beneficiary of their policy at any time, which is a fundamental right that enables them to ensure that the intended individuals receive the policy benefits.

D) Revoke an absolute assignment.

This option is correct as it is NOT a right of the policyowner. Once an absolute assignment is made, it typically cannot be revoked without the consent of the assignee. This limitation protects the assignee's interest in the policy.

Conclusion

Revoking an absolute assignment is not a right of the policyowner, as it involves relinquishing control over the policy to another party. In contrast, the rights to assign the policy, borrow from cash values, and change the beneficiary are fundamental rights granted to policyowners. Therefore, option D is definitively the correct answer, as it highlights a limitation in the policyowner's rights compared to the other options.