(1) Any policyholder is entitled to designate or change a beneficiary.
(2) If a policyholder has died without exercising his/her right of designation mentioned in paragraph (1), the insured shall be a beneficiary, and in cases where the policyholder has died without exercising his/her right of change mentioned in paragraph (1), the right of the beneficiary shall be settled: Provided, That this shall not apply where an agreement provides that the policyholder's successor may exercise the right mentioned in paragraph (1) in the case of the policyholder's death. <Amended by Act No. 4470, Dec. 31, 1991>
(3) If a beneficiary has died during the period of coverage, a policyholder may re-designate any other beneficiary. In such cases, if the policyholder has died without exercising the right of designation, the inheritor of the beneficiary shall be a beneficiary.
(4) If a peril insured against occurs before a policyholder exercises his/her right of designation referred to in paragraphs (2) and (3), the inheritor of the insured or beneficiary shall be a beneficiary. <Newly Inserted by Act No. 4470, Dec. 31, 1991>