State RegulationsFL specificDifficulty 1/5
In Florida life insurance, what does an assignment of policy proceeds accomplish?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 627, Florida Statutes, an assignment is a transfer of the policyowner's rights - including rights to proceeds - to an assignee, who then stands in the owner's place for the assigned interest. The insured does not change, the policy's status is unaffected, and grace periods are untouched; assignment only moves rights in the policy's value and proceeds.
Why the other options are wrong
- A) Assignment never changes who the insured is; it transfers rights in the proceeds.
- B) Reinstatement restores a lapsed policy and is unrelated to assignment.
- C) Grace periods are set by statute and plan terms, not by assignment.
Memory hook
Assignment moves rights, not lives.