Kay enters into a contract with Life Insurance Company for a policy that designates Mia as the beneficiary. Kay 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 Kay makes.
C) subject to the first-in-time rule.
D) terminated by the reservation.

Question

Quizplus · Accepted Answer

Mia's rights under the policy are subject to any change that Kay makes because Kay has reserved the right to change the designated beneficiary. This means that Mia's status as a beneficiary is not guaranteed and can be altered by Kay at any time.

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