Which policy arrangement restricts the owner's ability to make changes without the beneficiary's written consent?

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Which policy arrangement restricts the owner's ability to make changes without the beneficiary's written consent?

Explanation:
An irrevocable beneficiary designation creates a protected interest for the beneficiary, so the policyowner cannot alter who receives the proceeds or other policy changes without that beneficiary’s written consent. This arrangement locks in the beneficiary and limits the owner’s ability to make changes unilaterally. In contrast, a revocable beneficiary can be changed by the owner without any beneficiary’s consent, and the terms for contingents or primary beneficiaries are about payout order rather than restricting the owner’s ability to modify the policy.

An irrevocable beneficiary designation creates a protected interest for the beneficiary, so the policyowner cannot alter who receives the proceeds or other policy changes without that beneficiary’s written consent. This arrangement locks in the beneficiary and limits the owner’s ability to make changes unilaterally.

In contrast, a revocable beneficiary can be changed by the owner without any beneficiary’s consent, and the terms for contingents or primary beneficiaries are about payout order rather than restricting the owner’s ability to modify the policy.

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