State RegulationsFL specificDifficulty 2/5
A woman lived in Florida for many years, then moved to Georgia. Her life insurer is later declared insolvent and liquidated. Under Fla. Stat. 631.713(2), is she eligible for Florida guaranty association coverage?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 631.713(2) (Chapter 631 Part III), the triggering condition for Florida Life & Health Insurance Guaranty Association coverage is Florida residency on the date the liquidation order is entered. Because she had already moved to Georgia before the order was entered, Florida's association does not cover her, regardless of where the policy was bought or her earlier domicile.
Why the other options are wrong
- A) Residency at issue or at purchase is not the test; the statute fixes on residency at the date of the liquidation order.
- C) Where the contract was sold does not confer eligibility; date-of-order domicile is what controls.
- D) Owning Florida property does not make a Georgia resident a Florida resident for Chapter 631 purposes.
Memory hook
Covered where you live when the insurer dies, not where you bought.