Question 54

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

A policyowner does not have the right to revoke an absolute assignment, which means that once an absolute assignment is made, the policy's ownership cannot be reclaimed by the original owner.

A) Assign or transfer the policy.

This option is incorrect because policyowners do have the right to assign or transfer their life insurance policy to another party. This transfer can be done either absolutely or as collateral for a loan, depending on the terms of the policy.

B) Borrow from the cash values.

This option is also incorrect as policyowners can borrow against the cash value of their life insurance policy. This feature allows them to access funds while the policy remains in force, subject to the terms of the policy.

C) Select and change a beneficiary.

This choice is incorrect as well since policyowners have the right to select and change the beneficiaries of their life insurance policy. This flexibility is a key right that policyowners hold, allowing them to adjust according to their personal circumstances.

D) Revoke an absolute assignment.

This option is correct because once a life insurance policy has been assigned absolutely to another party, the original policyowner cannot revoke that assignment. This limitation protects the rights of the assignee and confirms the irrevocable nature of an absolute assignment.

Conclusion

The correct answer, "Revoke an absolute assignment," is definitively not a right of the policyowner, as all other options (A, B, and C) represent rights that policyowners typically possess regarding their life insurance policies. The inability to revoke an absolute assignment underscores the importance of understanding the implications of transferring ownership in insurance agreements.