Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

If a policyowner changes ownership of a life policy to a new spouse but doesn't update the beneficiary, who receives the proceeds upon the insured's death?

The insured's children
The insured's new spouse
The insured's ex-spouse
The insured's estate

The correct answer is: The insured's ex-spouse

If a policyowner changes ownership of a life policy to a new spouse but doesn't update the beneficiary, the proceeds upon the insured's death will go to the designated beneficiary at the time of the insured's death, which in this case would be the insured's ex-spouse. The incorrect options are A The insured's children - unless they were specifically named as beneficiaries, they would not receive the proceeds. B: The insured's new spouse - even though the policy ownership was changed, the beneficiary designation was not, so the new spouse would not receive the proceeds. D: The insured's estate - the life insurance proceeds do not automatically become part of the deceased's estate unless there is no designated beneficiary.