State RegulationsFL specificDifficulty 2/5
Ben's ex-wife Dana is still the primary beneficiary of his Florida life policy, and his sister is the contingent. Dana dies before Ben. Who receives the proceeds at Ben's death?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, when the primary beneficiary predeceases the insured, the death proceeds pass to the contingent beneficiary. Dana's death ended her interest in the policy - a beneficiary designation does not pass to that beneficiary's own heirs unless the policy expressly provides for it. Had no contingent been named, the proceeds would instead be payable to the estate.
Why the other options are wrong
- A) A deceased beneficiary's share does not pass to her heirs; the contingent takes over.
- C) The estate is the payee only when no beneficiary survives the insured and no contingent is named.
- D) There is no statutory split; the contingent beneficiary receives the entire proceeds.
Memory hook
Primary dies first, contingent collects - not the primary's heirs.