Florida Life and Health Insurance License Practice Test

Which statement regarding the Change of Beneficiary provision is true?

1. The policyowner cannot change the beneficiary once designated.

2. The policyowner can change the beneficiary without any restrictions.

3. The policyowner needs the insurer's permission to change the beneficiary.

4. The policyowner can change the beneficiary but consent may be needed if the current beneficiary is designated as irrevocable.

The correct answer is: The policyowner can change the beneficiary but consent may be needed if the current beneficiary is designated as irrevocable.

A statement regarding the Change of Beneficiary provision means that it is a clause in a life insurance policy that allows the policyowner to make changes to the designated beneficiary. Option A, which states that the policyowner cannot change the beneficiary once designated, is incorrect because this provision allows the policyowner to make changes. Option B, which states that the policyowner can change the beneficiary without any restrictions, is also incorrect because there may be certain restrictions or conditions that the policyowner needs to fulfill before making changes. For example, if the current beneficiary is designated as irrevocable, the policyowner may need consent from the current beneficiary. Option C, which states that the policyowner needs the insurer's permission to change the beneficiary, is also incorrect. While some insurers may require the policyowner to notify them of any changes, the policyowner typically has the right to change the beneficiary without the insurer