Life Insurance Policy Provisions, Options, and Riders
What is the practical difference for an owner between a revocable and an irrevocable beneficiary designation?
Answer and explanation
Answer: B. An irrevocable beneficiary holds a vested interest, so the owner cannot change the designation, or usually assign the policy or take a loan, without that beneficiary's consent. A revocable designation leaves those rights with the owner throughout.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, revocable and irrevocable
More life insurance policy provisions, options, and riders questions
- Which need does the fixed-amount option meet better than the fixed-period option?
- Which owner is the reduction of premium dividend option best suited to?
- Which owner would the one-year term dividend option suit?
- Which three nonforfeiture options does a permanent policy customarily make available?
- Who exercises the rights a New York life policy confers, where the owner is not the insured?
- Who may elect a settlement option other than cash payment, and when may that election be made?
621 New York questions like this one.
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