Kip enters into a contract with Life Insurance Company for a policy that designates Mia as the beneficiary. Kip reserves the right to change the designated beneficiary. Mia's rights under the policy are
A)not affected by the reservation.
B)subject to any change that Kip makes.
C)subject to the first-in-time rule.
D)terminated by the reservation.

Question

Quizplus · Accepted Answer

Mia's rights as the beneficiary are subject to any change Kip makes because Kip has reserved the right to change the designated beneficiary. This means Kip can replace Mia with another beneficiary at any time.

Kip Enters into a Contract with Life Insurance Company for a Policy