West Virginia State Life Insurance Practice Exam

Which statement regarding the Change of Beneficiary provision is true?

1. The beneficiary can only be changed with the consent of the insured

2. The beneficiary can only be charged with the consent of the insurer

3. The beneficiary can be changed without notification

4. Only irrevocable beneficiaries can be changed without consent

The correct answer is: The beneficiary can only be charged with the consent of the insurer

The statement regarding the Change of Beneficiary provision that is true is that the beneficiary can only be changed with the consent of the insurer. This means that while the policyholder has the right to change the beneficiary designation, such changes often need to be formally processed by the insurance company. The insurer typically has guidelines and protocols in place that must be followed to ensure the change is valid and reflects the policyholder's intentions. This provision protects both the policyholder and the insurer, ensuring that all changes are properly documented and that the rights of the beneficiaries are maintained. It's also important to note that certain types of beneficiaries, such as irrevocable beneficiaries, require additional considerations; their change often necessitates further agreements since their consent is typically required to ensure that their rights under the policy aren't violated.