Florida Life and Health Insurance License Test 2025 – 400 Free Practice Questions to Pass the Exam

If the insurer found material misrepresentations made by the purchaser, they could take legal action against the estate of the deceased to recover any damages or losses incurred by the misrepresentation. However, in most cases, the insurer will still pay the Death Benefit to the named beneficiary as stated in the policy. This is because the Death Benefit is considered a separate and independent contract between the insurer and the beneficiary. Denying the claim completely (option A) or reducing the Death Benefit proportionally (option D) would not be a fair or just solution as the misrepresentations may not have affected the premium price or the decision to issue the policy. Asking for a refund of all premiums paid (option B) would also not be an appropriate action as the insurer has already provided coverage for the policy during the five years. Therefore, the most likely action the insurer will take is to pay the Death Benefit to the