Rhode Island Life Insurance Practice Exam

Who has the authority to change a revocable beneficiary?

1. Insurer

2. Beneficiary

3. Policyowner

4. Agent

The correct answer is: Policyowner

The policyowner has the authority to change a revocable beneficiary. This is because the revocable beneficiary designation allows the policyowner to maintain control over the policy and its benefits. The policyowner can change the beneficiary at any time without needing consent from the existing beneficiary, as long as the beneficiary is designated as revocable. This designation ensures flexibility for the policyowner to adapt the policy to changing circumstances, such as life events or relationships. In this scenario, while the insurer facilitates the policy and records changes, they do not have authority over who is designated as the beneficiary. The beneficiary themselves cannot alter their status; they can only receive benefits as outlined in the policy. The agent’s role is primarily to assist the policyowner with managing the policy and its provisions, but they do not have the authority to make changes to beneficiaries. Therefore, the policyowner is the only party with the power to change a revocable beneficiary designation.