State RegulationsFL specificDifficulty 2/5
An elderly Tampa policyowner worries that if he forgets a premium, his policy will lapse before his daughter finds out. What is the most appropriate Florida mechanism for him?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, designating a secondary addressee lets a trusted person receive duplicate premium-due and lapse notices, which is exactly the safeguard the policyowner wants. Assigning ownership or changing the beneficiary transfers rights far beyond notice; a policy loan merely borrows the policy's own cash value and does nothing to flag a missed premium.
Why the other options are wrong
- A) Assignment transfers ownership entirely; the father only wants his daughter informed, not empowered.
- B) A beneficiary designation affects who collects at death; it does not generate any notice before then.
- D) A loan reduces the policy's value and does not provide notice of missed premiums to anyone.
Memory hook
Worried about missed mail? Add a secondary addressee.