Tennessee Insurance Practice Exam

When can a policy owner change a revocable beneficiary?

1. Only at renewal

2. At any time

3. Only during policy issuance

4. With consent from the beneficiary

The correct answer is: At any time

A policy owner can change a revocable beneficiary at any time, which is what makes this answer correct. The nature of a revocable beneficiary means that the policy owner retains the right to alter who the beneficiary is without needing to obtain consent from the existing beneficiary. This flexibility allows the policy owner to adapt the beneficiary designation as personal circumstances change, such as marriage, divorce, or changes in relationships. In contrast, a policy owner would not be confined to changing the beneficiary only at renewal, during policy issuance, or under conditions that require consent from the beneficiary. These restrictions are applicable to irrevocable beneficiaries, who cannot be changed without the beneficiary's consent. Understanding these distinctions is key in navigating the options available for beneficiary designations in insurance policies.