West Virginia State Life Insurance Practice Exam

Who is authorized to change the beneficiary designation on a life insurance policy?

1. Policy owner

2. Insurance producer

3. Contingent beneficiary

4. Primary beneficiary

The correct answer is: Policy owner

The policy owner is the individual who has the legal authority to make changes to the beneficiary designation on a life insurance policy. This includes naming, changing, or revoking beneficiaries as they see fit, as long as the insurance contract does not impose additional restrictions or requirements. The policy owner has the contractual rights associated with the policy, which encompasses having control over the beneficiary designations. While other parties, such as the insurance producer, contingent beneficiary, and primary beneficiary, have roles in the life insurance process, they do not hold this authority. The insurance producer acts as an intermediary, facilitating the sale and management of the policy but does not have rights to alter its terms. On the other hand, the contingent beneficiary and primary beneficiary are individuals designated to receive the death benefit of the policy. However, their status does not grant them any power to make changes to the beneficiary designations themselves. Thus, the policy owner maintains exclusive control over these changes.