Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Life Insurance and AnnuitiesEasy
A Florida resident purchases a new individual life insurance policy. The policy includes a provision that allows the insured to change the beneficiary designation at any time without their consent, provided the beneficiary is not irrevocably designated. What is this provision commonly known as?
- AReinstatement Clause
- BAssignment Clause
- CIncontestable Clause
- DChange of Beneficiary Provision
Show answer & explanationAnswer & explanation
Correct answer: D. Change of Beneficiary Provision
The Change of Beneficiary Provision in a life insurance policy allows the policyowner to alter the designated beneficiary, provided the designation is not irrevocable. This is a standard policy feature.
Why the other options are wrong
- A. The Reinstatement Clause allows a lapsed policy to be restored under certain conditions.
- B. The Assignment Clause deals with transferring policy ownership, not beneficiary designation.
- C. The Incontestable Clause limits the insurer's ability to deny claims after a certain period due to misstatements.
Change of Beneficiary Provision
A standard life insurance policy provision that allows the policyowner to change the designated beneficiary.
- Policyowner typically has this right unless beneficiary is irrevocable.
- Does not require the current beneficiary's consent.
- Part of the policy's general provisions.
Memory trick: Beneficiary changes, policyowner's choice, unless fixed by bond.