State RegulationsFL specificDifficulty 2/5
A Florida professional association formed years ago to provide continuing education now wants to add group life coverage for its members. What is the key eligibility concern?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 627, Florida Statutes, association groups are eligible for group life insurance only when the association exists for purposes other than obtaining insurance - here, continuing education. Members of a qualifying association may be covered as a group, without individual evidence of insurability, and the association serves as the policyholder holding the master policy. An association created to buy insurance would fail this threshold test.
Why the other options are wrong
- B) Group coverage is underwritten on the group as a whole; individual proof of insurability is not an eligibility requirement.
- C) An association does not need to become an insurance company to be a group policyholder.
- D) Association groups cover the association's members; the members need not be employees of the association.
Memory hook
The association must exist for its own sake - insurance rides along.