New Jersey Life Insurance Exam Practice Question
A policyowner CANNOT change the beneficiary if he has named
Correct Answer: D
Rationale: When a policyowner names an irrevocable beneficiary, they relinquish the right to change the beneficiary without that person's consent. This ensures the beneficiary's rights are protected, making it impossible for the policyowner to alter the designation unilaterally.
In contrast, a spouse (A) can often be changed as beneficiaries, while a revocable beneficiary (B) allows the policyowner to modify the designation at any time. A permanent beneficiary (C) is not a standard term in insurance; it may imply a stable choice but does not prevent changes like an irrevocable beneficiary does. Thus, only an irrevocable beneficiary restricts the policyowner's ability to make changes.
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