State RegulationsFL specificDifficulty 1/5
Under Florida law, what is the general effect of a policyowner's divorce on a life insurance beneficiary designation naming the former spouse?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, and related Florida law governing life insurance beneficiary designations, divorce generally revokes a beneficiary designation in favor of a former spouse, so an ex-spouse left on the policy does not automatically collect. Florida adopted this rule so that a forgotten designation does not defeat the insured's probable intent; the proceeds instead pass under the policy's remaining terms.
Why the other options are wrong
- A) Florida law does not require a change form; the former spouse's interest is generally revoked automatically by divorce.
- B) No automatic transfer to children occurs; the policy's other terms, such as a contingent beneficiary, control.
- D) Divorce has no effect on the policy's continuation; only the beneficiary designation is affected.
Memory hook
Divorce cuts out the ex, even if the paper still lists them.