Rhode Island Life Insurance Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the Rhode Island Life Insurance Exam with comprehensive quizzes. Utilize flashcards and multiple choice questions, each equipped with hints and detailed explanations to ensure you're well-prepared for your certification!

Practice this question and more.

When can an irrevocable beneficiary be changed?

Only with their consent
By the policyowner at any time
After a specified time period
Only under financial hardship

The correct answer is: Only with their consent

An irrevocable beneficiary can only be changed with their consent because this designation is intended to provide a level of security for the beneficiary. When a beneficiary is named as irrevocable, it means that the policyowner cannot change or remove that beneficiary without their explicit agreement. This rule is in place to protect the rights of the irrevocable beneficiary, ensuring they have a claim to the policy proceeds, and preserving their vested interest in the contract. The need for consent emphasizes the legal and financial implications of such a designation, reinforcing the irrevocable nature of the beneficiary status. Other options suggest scenarios where a policyowner could unilaterally change the beneficiary, which undermines the very definition of an irrevocable beneficiary.