PSI Ohio Insurance Practice Exam 2026 - Free Ohio Insurance Practice Questions and Study Guide

The ability of a policyowner to change the beneficiary of an insurance policy hinges primarily on whether the beneficiary designation is revocable or irrevocable. If a policyowner has named an irrevocable beneficiary, they cannot change the beneficiary designation without the consent of that irrevocable beneficiary. This means the beneficiary has a vested interest in the policy's benefits, and their agreement is needed to make any changes.

Other factors, such as the relationship to the policyowner or whether the policy is term insurance, do not impact the policyowner's ability to change the beneficiary. Moreover, the policyowner's passing does not influence their right to change a beneficiary while they are still alive—it only affects the distribution of benefits according to the existing beneficiary designation. Therefore, naming an irrevocable beneficiary is the pivotal condition that restricts the policyowner’s ability to change the beneficiary.