Which of the following is NOT a right of the life insurance policyowner?

Rationale

Revoking an absolute assignment is not a right of the life insurance policyowner.

Once an absolute assignment is made, the policyowner relinquishes certain rights over the policy to the assignee, and they cannot revoke this assignment without the assignee's consent. This limitation is a critical aspect of absolute assignments in life insurance contracts.

A (Select and change a beneficiary.) YOUR ANSWER

The policyowner retains the right to select and change the beneficiary of the life insurance policy at any time, as long as the policy does not specify otherwise. This right is fundamental to the ownership of the policy and allows the owner to control who will receive the death benefit upon their passing.

B (Borrow from the cash values.) YOUR ANSWER

Policyowners typically have the right to borrow against the cash value of their whole life insurance policies. This borrowing is a standard feature that allows policyowners to access the accumulated value while keeping the policy in force, thereby providing financial flexibility.

C (Revoke an absolute assignment.) CORRECT

Once a policyowner has made an absolute assignment of the policy to another party, they cannot revoke this assignment without the consent of the assignee. This is because the rights and ownership of the policy have been fully transferred, which means the original owner has lost the ability to make decisions regarding that policy.

D (Assign or transfer the policy.) YOUR ANSWER

Life insurance policyowners have the right to assign or transfer their policy to another individual or entity, which can be done either as a collateral assignment or an absolute assignment. This right enables policyowners to manage their policies and adapt to changing financial needs.

Conclusion

In life insurance, the policyowner enjoys many rights, including selecting beneficiaries, borrowing against cash values, and assigning or transferring the policy. However, revoking an absolute assignment is not one of these rights, as it involves relinquishing control over the policy to another party. Understanding these rights is crucial for policyowners to effectively manage their life insurance assets.

Which of the following is NOT a right of the life insurance policyowner?

Revoking an absolute assignment is not a right of the life insurance policyowner.

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