State RegulationsFL specificDifficulty 1/5
Carlos named his wife Elena as beneficiary of his Florida life policy. They later divorced, and Carlos died without ever changing the designation. Who receives the death proceeds?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Florida law governing life policy provisions (Chapter 627, Florida Statutes), a divorce does not automatically revoke a former spouse's beneficiary designation. The insurer pays the death proceeds according to the beneficiary provision in the policy as it exists at the time of death. Because the policy contract controls, an agent must advise divorcing clients to file a change-of-beneficiary form; until that is done, the named former spouse remains entitled to the proceeds.
Why the other options are wrong
- B) Florida does not treat a divorce decree as an automatic revocation of a life policy beneficiary designation.
- C) No Florida statute redirects life insurance proceeds to blood relatives upon divorce; the designation on file controls.
- D) A secondary beneficiary takes only if the primary beneficiary predeceases the insured - divorce does not demote the primary beneficiary.
Memory hook
Divorce changes the marriage, not the beneficiary form.