State RegulationsFL specificDifficulty 2/5
A Florida agent's client finalized her divorce last month. What should the agent recommend regarding her life insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, a divorce does not by itself change a life policy's beneficiary designation - the ex-spouse remains the beneficiary until the policyowner files a change under the policy's procedure. The professional practice is therefore to review and update designations after major life events. Naming the agent as beneficiary is never an appropriate recommendation.
Why the other options are wrong
- A) The divorce decree does not automatically update insurance designations.
- B) Divorce has no effect on the validity of a life insurance policy.
- D) Naming the agent as interim beneficiary is a conflict of interest and improper.
Memory hook
After divorce, redo the form - the decree won't.