State RegulationsFL specificDifficulty 2/5
When an insured dependent dies under a Florida group life plan's dependent coverage, who normally receives the death benefit?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 627, Florida Statutes, dependent coverage in group life belongs to the employee: the employee pays for and owns the coverage on the spouse or child, and when that dependent dies the benefit is payable to the employee (the member). The employer has no beneficial interest in a dependent's death benefit, and the proceeds do not pass through the dependent's estate - they compensate the employee for the loss.
Why the other options are wrong
- A) The employer holds the master policy but has no beneficial interest in a dependent's death benefit.
- B) The dependent's estate is not the payee; the employee who owns the coverage is.
- C) The insurer does not absorb the benefit as a credit against future premiums.
Memory hook
Dependent dies, employee collects.