Life Insurance Policy Provisions, Options, and Riders
A New York beneficiary asks the insurer to stop the owner from changing the designation. What is the position?
Answer and explanation
Answer: D. Where the designation is revocable, the beneficiary holds only an expectancy and the owner may change it, which is one of the rights ownership carries. Consent, notice, and objection become relevant only where the designation has been made irrevocable.Source: N.Y. Ins. Law § 3203 — 3203, Owner's rights and the beneficiary
More life insurance policy provisions, options, and riders questions
- How is the interest credited under the accumulation at interest dividend option treated for tax?
- How is the interest paid under the interest only settlement option treated for tax?
- How is the lump sum paid under the cash settlement option treated for federal income tax?
- How may an accelerated payment of the death benefit be provided under New York law?
- If a cash-value policyowner stops paying premiums and selects the extended term nonforfeiture option, what coverage is provided?
- If a traditional policy uses the amount-purchased method for a misstated age, what is adjusted?
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