State RegulationsFL specificDifficulty 2/5
A life insurance death benefit goes unclaimed because the beneficiary cannot be located. What ultimately happens to the money under Florida law?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Florida's unclaimed property program, administered by the Department of Financial Services under the Chief Financial Officer, unclaimed insurance proceeds are turned over to the state after the statutory dormancy period. The state holds the funds in custody for the rightful owner rather than forfeiting them, and DFS works to reunite owners and heirs with their property.
Why the other options are wrong
- A) The insurer does not keep abandoned proceeds; after the dormancy period they must be reported and delivered to the state.
- B) FLAHIGA exists to pay covered claims when a member insurer fails, not to receive abandoned death benefits.
- C) Unclaimed property passes to the state, not to county governments.
Memory hook
Unclaimed money sleeps at DFS until its owner claims it.