The beneficiary provision where the beneficiary does NOT have a vested interest in the policy is considered

Rationale

Revocable.

In insurance, a beneficiary provision that does not grant the beneficiary a vested interest in the policy is classified as revocable. This means that the policy owner retains the right to change or revoke the designation of the beneficiary at any time without requiring their consent.

A (primary.) YOUR ANSWER

A primary beneficiary is the first in line to receive the policy benefits upon the death of the insured. This designation is not related to whether the beneficiary has a vested interest in the policy or if the designation can be altered by the policy owner.

C (irrevocable.) YOUR ANSWER

An irrevocable beneficiary designation means that the policy owner cannot change the beneficiary without their consent. This type of designation grants the beneficiary a vested interest in the policy, unlike the scenario described in the question.

D (contingent.) YOUR ANSWER

A contingent beneficiary is entitled to receive the policy benefits only if certain conditions are met, such as the primary beneficiary predeceasing the insured. This designation does not necessarily indicate whether the beneficiary has a vested interest in the policy.

Conclusion

The correct answer is "B) revocable," as it accurately describes a beneficiary provision where the beneficiary does not possess a vested interest in the policy. This distinction allows the policy owner the flexibility to modify the beneficiary designation as needed, distinguishing it from irrevocable arrangements where such changes are restricted.

The beneficiary provision where the beneficiary does NOT have a vested interest in the policy is considered

Revocable.

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