7. Without written consent, a policyowner CANNOT change the beneficiary if he has named
Answer: D
A policyowner CANNOT change the beneficiary if he has named an irrevocable beneficiary.
An irrevocable beneficiary is one that cannot be changed without the consent of the beneficiary. Therefore, if a policyowner has designated someone as an irrevocable beneficiary, they are unable to alter this designation without obtaining written consent.
A) a contingent beneficiary.
A contingent beneficiary is someone who will receive the benefits only if the primary beneficiary is not able to do so. Since the primary beneficiary can be changed, the policyowner retains the ability to modify this designation without restrictions, making this option incorrect.
B) a revocable beneficiary.
A revocable beneficiary can be changed by the policyowner at any time without needing consent. This flexibility means that if a policyowner has named a revocable beneficiary, they can alter this choice whenever they choose, thus this option is incorrect.
C) a permanent beneficiary.
The term "permanent beneficiary" is not a standard designation in insurance terminology. It may imply a beneficiary that is intended to be unchanged, but it does not equate to the legal implications associated with irrevocable beneficiaries. Therefore, this option does not accurately represent the conditions under which a policyowner cannot change a beneficiary.
D) an irrevocable beneficiary.
An irrevocable beneficiary designation means that the policyowner cannot change the beneficiary without the written consent of that beneficiary. This legal restriction is what prevents the policyowner from making any changes, making this option the correct answer.
Conclusion
The correct answer is D, as an irrevocable beneficiary designation legally binds the policyowner, preventing any changes without the beneficiary's consent. Options A, B, and C do not impose such restrictions, and therefore do not fit the criteria outlined in the question. This highlights the significant legal distinction between irrevocable and other types of beneficiary designations.