State RegulationsFL specificDifficulty 2/5
In a Florida group life arrangement, where does the master policy itself reside?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 627, Florida Statutes, the master policy is a single contract issued to the group policyholder - the employer, union, or other group entity - and it stays with that policyholder. The individual members' rights flow through the certificates they receive; the DFS regulates the arrangement but does not hold the controlling contract, and beneficiaries have no policy rights while the member lives.
Why the other options are wrong
- B) Employees hold certificates, not the master policy; the master contract belongs to the group policyholder.
- C) The DFS regulates and examines group plans but does not hold the master policy.
- D) Beneficiaries acquire rights only at the member's death; they never hold the master policy.
Memory hook
The employer keeps the master; the member keeps a certificate.