A policyowner names a beneficiary irrevocably. Under California Insurance Code Section 10170, the policyowner may change this beneficiary only if:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
California Insurance Code Section 10170(e) provides that an agreement governing life insurance proceeds may be rescinded or amended without the consent of a designated beneficiary unless the beneficiary's rights have been expressly declared irrevocable. Once a beneficiary is designated irrevocably, that beneficiary holds a vested right, and the policyowner cannot change the beneficiary - and in some cases cannot take ownership actions that impair the beneficiary - without the beneficiary's consent. This California-codified rule is a frequent exam point because it contrasts with the revocable default.
Why the other options are wrong
- B) The insured's signature relates to underwriting and delivery of the policy. It does not override an irrevocable beneficiary's vested right to consent.
- C) The insurer administers beneficiary changes but has no authority to permit a change that the law forbids without the beneficiary's consent.
- D) No waiting period of two years or otherwise extinguishes the irrevocable beneficiary's consent requirement. The vested right continues until the beneficiary releases it.
Memory hook
Irrevocable means a lock, and only the beneficiary holds the key; see CIC Section 10170.