State RegulationsFL specificDifficulty 2/5
When is a Florida life insurer required to settle a lump-sum death claim?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 627.461, settlement of a life claim is due upon the insurer's receipt of due proof of death and surrender of the policy - Florida sets no statutory day count for paying life proceeds. Interest protections come from Fla. Stat. 627.4615, which requires interest at not less than the Moody's Corporate Bond Yield Average from receipt of the written death certificate. Agents should not quote clients a fixed payment deadline that the statute does not contain.
Why the other options are wrong
- A) The 30-day window in Fla. Stat. 626.9541(1)(i)3.e is the deadline to confirm or deny coverage after a completed proof of loss, not to pay life proceeds.
- B) Due proof of death and surrender of the policy come first; the insurer's obligation to settle is not triggered before it receives them.
- D) The 20-day electronic-claims window belongs to health claims under Fla. Stat. 627.6131, not life death claims.
Memory hook
Proof of death plus the policy - then payment is due.