State RegulationsFL specificDifficulty 2/5
A Florida policyowner never elected a settlement option and later dies. Who generally selects how the death proceeds will be paid?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Florida life policy provisions (Chapter 627, Florida Statutes), when the policyowner has not chosen a settlement option, the beneficiary generally may select among the options the policy offers - such as lump sum, interest only, fixed amount, or life income - when the claim is made. Neither the insurer, the agent, nor an estate representative can dictate the mode of payment; only the policyowner's election during life or the beneficiary's choice at claim time controls.
Why the other options are wrong
- B) The insurer must offer the policy's stated settlement options but cannot impose one on the parties.
- C) The agent of record has no authority to elect a settlement option for the policyowner or beneficiary.
- D) The estate is involved only when there is no living or designated beneficiary.
Memory hook
No owner election? The beneficiary picks the payout.