State RegulationsOH specificDifficulty 2/5
A Dayton insured's life policy contains an irrevocable beneficiary designation. Before borrowing against the policy's cash value, what must the insured obtain?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
An irrevocable designation vests rights in the beneficiary, so the insured cannot change the beneficiary, assign the policy, surrender it, or borrow against its values without the beneficiary's consent. This contrasts with the default rule under which the change-of-beneficiary right is reserved to the insured (Ohio beneficiary provisions, ORC 3911.09 and companion sections).
Why the other options are wrong
- A) No court involvement is required; this is a contract-rights matter between the parties to the policy.
- B) The Superintendent does not approve individual policy loans; consent must come from the irrevocable beneficiary.
- D) The irrevocable designation precisely limits the owner's ability to borrow, assign, or surrender without consent.
Memory hook
Irrevocable = beneficiary holds the veto on changes and loans.