State RegulationsFL specificDifficulty 1/5
A Florida producer is asked to evaluate several organizations that want to purchase group life coverage. Only one of them can qualify as an eligible group; which one?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Chapter 627, Florida Statutes, group life insurance may be written for groups with a legitimate common bond - employees of one employer, members of a labor union, members of an association formed for purposes other than insurance, and creditor-debtor groups, among others. The employees of a single employer are the classic eligible group. Collections of individuals who come together just to buy insurance are not eligible.
Why the other options are wrong
- A) Neighbors share no qualifying common bond for group insurance purposes.
- B) A group formed for the sole purpose of obtaining insurance is ineligible under Florida law.
- D) A customer loyalty list is not one of the recognized eligible groups for group life insurance.
Memory hook
Group life needs a real bond: employer, union, association, or creditor.