Final answer:
The beneficiary designation that states the policyowner may not change the designation without the knowledge and consent of the beneficiary is called an irrevocable beneficiary designation.
Step-by-step explanation:
The beneficiary designation that states the policyowner may not change the designation without the knowledge and consent of the beneficiary is called an irrevocable beneficiary designation.
An irrevocable beneficiary designation is a legally binding agreement that restricts the policyowner from changing the designated beneficiary without the beneficiary's consent. This ensures that the policyowner cannot alter the beneficiary designation without the knowledge and approval of the beneficiary.
For example, if a policyowner names their spouse as the irrevocable beneficiary, they cannot change the designation to someone else without the spouse's consent. This protects the rights and interests of the designated beneficiary.