Tennessee Life Producer Practice Exam

What must a policyowner with an Irrevocable beneficiary designation obtain to change the beneficiary?

1. Written Consent from an Advisor

2. State Approval

3. Permission from the Beneficiary

4. Legal Documentation

The correct answer is: Permission from the Beneficiary

In the context of life insurance policies, when a policyowner designates a beneficiary as irrevocable, they essentially give that beneficiary certain rights that cannot be altered without their permission. Therefore, to change the beneficiary, the policyowner must obtain permission from the beneficiary. This requirement protects the rights of the irrevocable beneficiary, ensuring that they have a say in any alterations that could affect their financial interest in the policy. The other options, while they may seem plausible, do not accurately reflect the requirements for changing an irrevocable designation. Written consent from an advisor, state approval, or legal documentation are not necessary to execute a change in this context and do not hold the same weight as the irrevocable beneficiary's consent. This establishes a clear understanding of the rights and responsibilities associated with irrevocable beneficiary designations in life insurance policies.